Tata Motors has entered into an agreement to acquire a 26.79 percent stake in the digital platform Freight Tiger for Rs 150 crore. The Mumbai-based automaker and Freight Commerce Solutions signed a securities subscription agreement (SSA) and a shareholders agreement (SHA) for this acquisition. The SSA also includes a provision allowing Tata Motors to invest an additional Rs 100 crore over the next two years at the prevailing market value.
Freight Tiger is a digital platform offering end-to-end logistics value chain solutions for cargo movement in India. The platform connects shippers, carriers, logistics service providers, and fleet owners to a single digital marketplace, facilitating the easy discovery, booking, and management of freight. Additionally, it provides various software-as-a-service (SaaS) solutions to digitize and streamline logistics interactions, including freight tracking, assignment, carrier matching, documentation, and payment processing.
Freight Tiger manages over 10 million trips on an annualized basis and has spent the last seven years integrating and eliminating inefficiencies in cargo movements. Tata Motors Executive Director Girish Wagh expressed the company’s commitment to transforming the road logistics industry through innovative solutions and services.
Wagh believes that by playing a more extensive and deeper role in uniting stakeholders to enhance road logistics efficiency, they can deliver value to their core customers, the fleet owners. Freight Tiger’s founder and CEO, Swapnil Shah, highlighted the significance of software-led approaches in transforming existing industry assets, making them more efficient for all stakeholders involved.