New Delhi [India], October 20 (ANI): In a significant move to strengthen its presence in the digital logistics landscape, Tata Motors Limited, has announced its strategic investment in Freight Commerce Solutions Private Limited, popularly known as ‘Freight Tiger’.
The announcement, made through a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighted Tata Motors’ plans to acquire a substantial 26.79 per cent stake in Freight Tiger on October 19.
The deal, valued at Rs 150 Crores, was formalized through a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) signed between Tata Motors and Freight Tiger.
Additionally, Tata Motors has the option to invest an additional Rs 100 Crores over the next two years, based on prevailing market conditions.
Commenting on the partnership, Girish Wagh, Executive Director at Tata Motors Ltd, stated, “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”.
Wagh further said, “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”
Swapnil Shah, Founder and CEO of Freight Tiger, expressed his enthusiasm about Tata Motors’ strategic investment, saying, “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”.
Shah added, “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 per cent of GDP from over 14 per cent.”
The transaction, which is subject to customary condition precedents, is expected to be completed by November 15.
Tata Motors’ foray into the digital logistics sector signifies its commitment to embracing innovative technologies and driving transformative changes in the Indian logistics landscape.
Freight Tiger, founded in 2014 and headquartered in Mumbai, operates as India’s largest software-enabled neutral freight network.
The company offers a comprehensive suite of digital solutions, including a cloud-based Transportation Management Software (TMS) platform, efficient freight procurement systems, and a marketplace application connecting fleet owners and logistics service providers.
Fright Tiger processes a 4 per cent of India’s total freight and operates across 90,000+ locations, serving a vast network of 400+ shippers and 1500+ logistics service providers.
Tata Motors’ strategic investment in Freight Tiger is aligned with its commitment to transforming the road logistics industry.
By integrating Freight Tiger’s innovative technology with Tata Motors’ connected vehicle platform ‘Fleet Edge,’ the companies aim to create an end-to-end digital ecosystem covering both truck and trip logistics.
This integration will offer a unified national platform to streamline logistics interactions, optimize cargo movements, and enhance overall efficiency in the freight industry.
Tata Motors’ strategic investment in Freight Tiger underscores its determination to be at the forefront of the evolving logistics ecosystem, ensuring efficiency, transparency, and sustainability in the movement of goods across the country. (ANI)
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