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On Thursday, Tata Motors made an announcement regarding its plans to acquire a 27% stake in the digital logistics solutions provider ‘Freight Tiger’ for a sum of ₹150 crore.
Swapnil Shah, Founder and CEO of ‘Freight Tiger,’ emphasized, “Utilizing software-driven strategies acts as the catalyst for overhauling current industry assets, enhancing their efficiency, and fostering trust and collaboration within the logistics value chain.”
Tata Motors Acquires 26.79% Stake in Freight Tiger for Rs 150 Crore
In a significant move, Tata Motors, a Mumbai-based automotive giant, has entered into a strategic partnership with Freight Commerce Solutions to secure a substantial stake in Freight Tiger, a prominent digital logistics platform. Under this deal, Tata Motors will acquire a substantial 26.79% stake, investing a substantial sum of Rs 150 crore.
Key Agreement Details
This momentous agreement between Tata Motors and Freight Commerce Solutions encompasses both a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA). Notably, the SSA includes a provision allowing Tata Motors to inject an additional Rs 100 crore into the venture over the next two years, based on the then-current market valuation.
Revolutionizing Logistics with Freight Tiger
Freight Tiger is an innovative digital platform that revolutionizes the end-to-end logistics value chain, facilitating seamless cargo movement within the country. This platform serves as a unified digital marketplace, connecting shippers, carriers, logistics service providers, and fleet owners. With an impressive track record, it manages over 1 crore trips annually and has effectively addressed cargo movement challenges over the past seven years.
Statement by Girish Wagh, Executive Director of Tata Motors
Girish Wagh, the Executive Director of Tata Motors, expressed the company’s commitment to transforming the road logistics industry through innovative solutions and services. Tata Motors envisions playing a pivotal role in enhancing road logistics efficiency by uniting all stakeholders. Their ultimate goal is to create value for core customers, particularly fleet owners, through this strategic partnership.
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