Tata Motors to acquire stake in digital logistics platform Freight Tiger
Tata Motors and Freight Commerce Solutions Private Limited (popularly known as ‘Freight Tiger’) have finalized a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA). This collaboration entails Tata Motors acquiring a 26.79% stake in ‘Freight Tiger’ for a price of Rs 150 Crores. The SSA also opens doors for a potential additional investment of Rs 100 Crores by Tata Motors over the subsequent two years, based on the prevailing market value.
Spotlight on Freight Tiger’s Digital Prowess
As a cutting-edge digital platform, ‘Freight Tiger’ offers holistic logistics solutions, streamlining cargo movement across India. This single digital marketplace bridges shippers, fleet owners, carriers, and logistics service providers, simplifying freight management processes. Key features encompass a range of SaaS solutions designed to digitize logistics interactions – from freight tracking, documentation, carrier matching to seamless payment processing. Boasting more than 10 million annual trips, ‘Freight Tiger’ has consistently refined cargo movement logistics since its inception seven years ago.
Tata Motors & Freight Tiger: A Symbiotic Digital Fusion
Tata Motors’ investment in ‘Freight Tiger’ is strategically aligned with its ‘Fleet Edge’ platform, a connected vehicle solution crafted for fleet operation management. This partnership aims to conjure a comprehensive digital ecosystem enveloping the entire logistics value chain, benefiting a plethora of stakeholders in the logistics segment.
However, it’s pivotal to note that the deal’s finalization is contingent upon the fulfillment of standard prerequisites.
Voices from the Helm
Girish Wagh, Executive Director of Tata Motors Ltd, elucidated the company’s vision, stating, “Our mission at Tata Motors is to revolutionize the road logistics industry through groundbreaking solutions and services. Collaborating with Freight Tiger, a forerunner in digital logistics, resonates with our aim to enhance road logistics efficiency. Together, we’re committed to fostering value and growth for our customers, partners, and stakeholders.”
Echoing this sentiment, Swapnil Shah, Founder & CEO of ‘Freight Tiger’, expressed, “Our approach is software-driven, aiming to reinvent existing logistics assets and boost their efficiency. Our goal is to establish trust and encourage collaboration throughout the logistics chain. With Tata Motors as our strategic ally, we are poised to spearhead India’s efforts in cutting logistics costs from over 14% of GDP to below 10%.”