Tata Motors to acquire 26.79% stake in Freight Tiger for Rs 150 crore

New Delhi, Tata Motors on Thursday said it has inked a pact to acquire a 26.79 per cent stake in digital platform Freight Tiger for Rs 150 crore. The company and Freight Commerce Solutions have signed a securities subscription agreement (SSA) and a shareholders agreement (SHA) for the acquisition of the stake in Freight Tiger, the Mumbai-based auto major said in a regulatory filing.

The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value, it added.

Freight Tiger is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country.

The platform connects shippers, carriers, logistics service providers and fleet owners to a single digital marketplace, making it easy to find, book and manage freight whilst offering a variety of software as a service (SaaS) solutions to digitise and streamline logistics interactions such as freight tracking, assignment, carrier matching, documentation, and payment processing.

The platform facilitates more than 10 million trips on annualised basis and has been integrating and ironing out inefficiencies in cargo movements over the last 7 years.

"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," Tata Motors Executive Director Girish Wagh said.

Freight Tiger founder and CEO Swapnil Shah said software-led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders.