Tata Motors has reached an agreement with logistics value chain platform Freight Tiger for the acquisition of a substantial 26.79% stake in the firm for a substantial sum of Rs 150 Crores. Moreover, the Securities Subscription Agreement (SSA) includes a provision for Tata Motors to potentially inject an additional Rs 100 crore over the next two years, based on the market value at the time.
'Freight Tiger' is a digital platform that facilitates the logistics value chain by connecting shippers, carriers, logistics service providers, and fleet owners through a unified digital marketplace. Its platform streamlines various logistical operations, including freight tracking, assignment, carrier matching, documentation, and payment processing, and facilitates over 10 million trips annually.
Over the past seven years, Freight Tiger claims to have identified and resolved inefficiencies within cargo movements.
Tata Motors has recently introduced 'Fleet Edge,' a connected vehicle platform designed to enhance fleet operations management. The company said that with the combined efforts of 'Fleet Edge' and 'Freight Tiger', it aims to establish a comprehensive end-to-end digital ecosystem, catering to the entire logistics value chain.
Girish Wagh, Executive Director, Tata Motorssaid, “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. 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. With such incredible backing and expertise, the company is strategically positioned to lead India's efforts in reducing logistics costs to under 10% of GDP from over 14%.”
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