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Tata Motors to acquire 27% stake in ‘Freight Tiger’ for ₹150 crore
- Tata Motors announced on Thursday that it will acquire 27 per cent stake in digital logistic solutions provider ‘Freight Tiger’ for an amount of ₹150 crore
Tata Motors announced on Thursday, October 19 that it will acquire 27 per cent stake in software as a service (SaaS) ‘Freight Tiger’ for a consideration of ₹150 crore. The agreement also includes a provision enabling Tata Motors to further invest ₹100 crore over the next two years, at the then prevailing market value.
Freight Commerce Solutions Pvt Ltd is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country. The platform connects shippers, carriers, logistics service providers and fleet owners to a single digital marketplace, making it easy to find, book and manage freight.
"Software- led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders. We do this by building trust and facilitating collaboration across the logistics value chain,'' said Swapnil Shah, Founder & CEO of ‘Freight Tiger’.
‘’We are excited to have Tata motors as a strategic investor who shares our belief and vision to build a unified national platform at an unprecedented scale. With such incredible backing and expertise, the company is strategically positioned to lead India's efforts in reducing logistics costs to under 10 per cent of GDP from over 14 per cent,'' added Shah.
The company also offers a variety of SaaS solutions to digitize and streamline logistics interactions such as freight tracking, assignment, carrier matching, documentation, and payment processing. The platform facilitates more than 10 million trips on annualised basis and has been successfully integrating and ironing out inefficiencies in cargo movements over the last seven years.
Tata Motors has already introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations management. Tata Motors' strategic investment in ‘Freight Tiger’ will accelerate the company's efficiency in the truck and freight ecosystem, according to a regulatory filing by Tata Motors to the stock exchanges. Moguntia Capital GmbH acted as an advisor to Freight Tiger in this transaction.
Also Read: Tata Motors Q2 Update: Global wholesales up 7% to 3.4 lakh units, JLR volume rises 29% YoY
‘’We believe that by playing a larger and deeper role in bringing all the stakeholders together to improve road logistics efficiency, we can create value for our core customers: the fleet owners. Hence, we are excited to announce our partnership with Freight Tiger, a pioneer in digitizing the logistics industry. Their vision is aligned with ours, as we strive to improve the efficiency and sustainability of road logistics,'' said Girish Wagh, Executive Director, Tata Motors Ltd.
Tata Motors' inclusion in Freight Tiger's list of institutional investors, which includes Florintree Advisors, Lightspeed India Partners, and the Venture Capital Arm of Eastern Pacific Shipping, underscores the potential of the collaboration.
Together, the new solutions - ‘Fleet Edge’ and ‘Freight Tiger aim to forge a comprehensive end-to-end digital ecosystem for the entire logistics value chain, covering both the truck and the trip ecosystem - to benefits the shippers, brokers and transporters.
On Thursday, October 19, shares of Tata Motors settled 0.01 per cent higher at ₹668.45 apiece on the BSE.
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First Published:19 Oct 2023, 06:16 PM IST
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