Tata Motors, a Mumbai-based auto major, has announced its agreement to acquire a 26.79% stake in digital platform Freight Tiger for Rs 150 crore. This acquisition comes as the company and Freight Commerce Solutions sign a securities subscription agreement (SSA) and a shareholders agreement (SHA). The SSA also allows Tata Motors to invest an additional Rs 100 crore over the next two years based on the prevailing market value.
Freight Tiger is a digital platform that offers end-to-end logistics solutions for cargo movement in India. The platform connects shippers, carriers, logistics service providers, and fleet owners through a single digital marketplace. 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. With over 10 million annualized trips facilitated the platform, Freight Tiger has successfully addressed inefficiencies in cargo movements over the past seven years.
Tata Motors Executive Director, Girish Wagh, expressed the company’s commitment to revolutionizing the road logistics industry through their innovative solutions and services. They believe that bringing all stakeholders together to enhance road logistics efficiency, they can create value for their core customers, the fleet owners.
Freight Tiger’s founder and CEO, Swapnil Shah, highlighted the importance of software-led approaches in transforming existing industry assets and increasing efficiency for all stakeholders.
As Tata Motors strengthens its position in the digital platform space, this acquisition marks a significant milestone in their efforts to redefine the logistics industry in India.