Mumbai: Tata Motors, a leading automotive manufacturer, and Freight Commerce Solutions Private Limited, known as ‘Freight Tiger,’ have officially signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA), on Thursday. These agreements solidify Tata Motors’ acquisition of a substantial 26.79% stake in ‘Freight Tiger’ for an agreed sum of INR 150 Crores. Additionally, the SSA includes a provision enabling Tata Motors to invest an additional INR 100 Crores over the next two years, based on the then-prevailing market value.
The ‘Freight Tiger’ Digital Platform
‘Freight Tiger’ is a digital platform that offers comprehensive solutions for managing cargo movements within India. This platform serves as a digital marketplace, seamlessly connecting shippers, carriers, logistics service providers, and fleet owners. The primary objective of ‘Freight Tiger’ is to facilitate the easy discovery, booking, and management of freight. It offers a range of Software as a Service (SaaS) solutions that digitize and streamline various aspects of logistics operations. These include features like freight tracking, assignment management, carrier matching, documentation handling, and payment processing. Over the past seven years, ‘Freight Tiger’ has successfully orchestrated over 10 million trips, effectively resolving inefficiencies within cargo movements.
Tata Motors’ ‘Fleet Edge’ and Strategic Investment
Tata Motors has introduced ‘Fleet Edge,’ a connected vehicle platform designed to enhance fleet operations management. This strategic investment in ‘Freight Tiger’ underscores Tata Motors’ commitment to advancing efficiency and effectiveness within the truck and freight ecosystem. The combination of ‘Fleet Edge’ and ‘Freight Tiger’ aims to create a holistic, end-to-end digital ecosystem that caters to the entire logistics value chain, spanning both the truck and trip ecosystems. This collaborative effort holds the potential to bring substantial benefits to shippers, brokers, and transporters, ultimately contributing to the fluidity of logistics in India.
Girish Wagh, Executive Director at Tata Motors Ltd, stated, “At Tata Motors, we are committed to transforming the 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.”
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%.”
Transaction Closure and the Road Ahead
The finalization of this transaction is contingent upon the fulfillment of customary condition precedents, as per industry norms. Tata Motors’ partnership with ‘Freight Tiger’ is a strategic move aimed at bolstering efficiency and connectivity within India’s logistics landscape.