Tata Motors to acquire 26.79% stake in Freight Tiger for Rs 150 crore

Tata Motors will pick up a 26.79 per cent stake in digital logistics solutions company Freight Tiger for Rs 150 crore, the company said on Thursday.

Tata Motors signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) for the acquisition of a 26.79 per cent stake in Freight Tiger on Thursday. The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then-prevailing market value.

Freight Tiger 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 whilst offering a variety of Software as a Service (SaaS) solutions to digitise and streamline logistics interactions such as freight tracking, assignment, carrier matching, documentation, and payment processing. The platform facilitates more than 10 million trips on an 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 initiatives in driving effectiveness and efficiency in the truck and freight ecosystem," the company said.

The closure of the transaction is subject to the satisfaction of customary condition precedents.

Girish Wagh, executive director, Tata Motors, commented, "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."

He added: "Their vision is aligned with ours, as we strive to improve the efficiency and sustainability of road logistics. Together, we will create new opportunities for growth and value creation for our customers, partners, and stakeholders."

Swapnil Shah, founder & CEO of Freight Tiger, added, "Software-led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders... 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."