Funding Alert

Tata Motors signs Definitive Agreement to secure 27% stake in Freight Tiger

• ByStartupStory     |    October 20, 2023

Tata Motors is set to strengthen its presence in the logistics industry through a strategic investment. The automotive giant has signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) to acquire a 26.79% stake in Freight Commerce Solutions Private Limited, trading as ‘Freight Tiger,’ for an initial sum of Rs 150 Crores. This agreement also provides Tata Motors with the option to invest an additional Rs 100 Crores over the next two years, reflecting the company’s commitment to the logistics sector.

Freight Tiger is a digital platform that offers end-to-end solutions for cargo movement in India’s logistics landscape. It serves as a digital marketplace connecting shippers, carriers, logistics service providers, and fleet owners. The platform streamlines various aspects of logistics through Software as a Service (SaaS) solutions, including freight tracking, assignment, carrier matching, documentation, and payment processing. Currently facilitating over 10 million trips on an annualized basis, Freight Tiger has been instrumental in optimizing cargo movements over the past seven years.

Tata Motors has been actively involved in improving fleet operations management with the introduction of its connected vehicle platform, ‘Fleet Edge.’ This strategic investment in Freight Tiger is expected to complement Tata Motors’ existing initiatives in enhancing the efficiency of the truck and freight ecosystem. The integration of ‘Fleet Edge’ and ‘Freight Tiger’ aims to create a comprehensive end-to-end digital ecosystem that covers the entire logistics value chain, offering substantial benefits to shippers, brokers, and transporters.

The completion of this transaction is contingent upon the satisfaction of customary condition precedents. Tata Motors aims to foster collaboration between industry stakeholders to enhance road logistics efficiency and bring value to fleet owners. This investment aligns with Tata Motors’ commitment to transforming the road logistics industry through innovative solutions and services.

Mr. Girish Wagh, Executive Director, Tata Motors Ltd commented, “At Tata Motors, we are committed to transforming road logistics industry with our innovative solutions and services. 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 digitizing the logistics industry. 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”.

Mr. 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. We are excited to have Tata motors as a strategic investor who shares our belief and vision to build a unified national platform at an unprecedented scale. 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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