Tata Motors To Acquire 27% Stake In Freight Tiger At Rs. 150 Cr

Tata Motors and Freight Commerce Solutions (Freight Tiger) have signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) for the acquisition of 26.79 per cent stake in ‘Freight Tiger’ for a consideration of Rs. 150 crore. 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.

Tata Motors has already introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations management. With this investment, Tata Motors is hopeful that it will accelerate the company's initiatives in driving effectiveness and efficiency in the truck and freight ecosystem. 

Together, these solutions (Fleet Edge & Freight Tiger) aspire to forge a comprehensive end-to-end digital ecosystem for the entire logistics value chain, covering both the truck and the trip ecosystem thereby bringing significant benefits to shippers, brokers and transporters.

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. Hence, we are excited to announce our partnership with Freight Tiger, a pioneer in digitising the logistics industry.”

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 annualised basis and has been integrating and ironing out inefficiencies in cargo movements over the last 7 years. 

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. We do this by building trust & facilitating collaboration across the logistics value chain. 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.”

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