Tata Motors to Acquire 27% Stake in Freight Tiger

Tata Motors is acquiring a 26.79% stake in 'Freight Tiger,' a digital logistics platform, with a Rs 150 Crores investment and an option for an additional Rs 100 Crores. This strategic move aims to enhance efficiency in the road logistics industry,

Mumbai- Tata Motors Ltd., and Freight Commerce Solutions Private Limited (‘Freight Tiger’) have officially inked a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) for Tata Motors' acquisition of a 26.79% stake in ‘Freight Tiger’ at a valuation of Rs 150 Crores. The agreement also allows Tata Motors to potentially invest an additional Rs 100 Crores over the next two years, based on prevailing market rates.

‘Freight Tiger’ operates as a digital platform that offers end-to-end solutions for cargo transportation in India. This platform serves as a digital marketplace connecting shippers, carriers, logistics service providers, and fleet owners, simplifying the process of finding, booking, and managing freight. Additionally, it provides various Software as a Service (SaaS) solutions to digitize and streamline logistics interactions, such as freight tracking, assignment, carrier matching, documentation, and payment processing. With more than 10 million trips annually, ‘Freight Tiger’ has effectively addressed inefficiencies in cargo movements for the past seven years.

Tata Motors has already introduced the ‘Fleet Edge’ connected vehicle platform to enhance fleet operations management. Tata Motors' strategic investment in ‘Freight Tiger’ will accelerate their efforts to enhance effectiveness and efficiency in the truck and freight ecosystem. The combined efforts of ‘Fleet Edge’ and ‘Freight Tiger’ aim to create an all-encompassing end-to-end digital ecosystem for the entire logistics value chain, covering both the truck and trip ecosystems. This initiative promises significant benefits to shippers, brokers, and transporters who play a crucial role in keeping India's logistics sector running smoothly.

It's important to note that the closure of this transaction is subject to customary condition precedents.

Mr. Girish Wagh, Executive Director of Tata Motors Ltd, said that, “At Tata Motors, we are dedicated to revolutionizing the road logistics industry with our innovative solutions and services. We believe that by uniting all stakeholders to enhance road logistics efficiency, we can create substantial value for our primary customers, the fleet owners. Therefore, we are delighted to announce our partnership with Freight Tiger, a trailblazer in digitizing the logistics industry. Our vision aligns with theirs as we strive to enhance the efficiency and sustainability of road logistics. Together, we will unlock new opportunities for growth and value creation for our customers, partners, and stakeholders.”

Mr. Swapnil Shah, Founder & CEO of ‘Freight Tiger, said that, “Software-led approaches hold the key to transforming existing industry assets and maximizing their efficiency for all stakeholders. We achieve this by building trust and fostering collaboration across the logistics value chain. We are excited to have Tata Motors as a strategic investor who shares our belief and vision in building a unified national platform at an unprecedented scale. With this incredible support and expertise, the company is strategically positioned to lead India's efforts to reduce logistics costs to under 10% of GDP from over 14%.”