Tata Motors to acquire 27% stake in Freight Tiger

Tata Motors, in a recent announcement on Thursday, disclosed its agreement to acquire a substantial 26.79% stake in the digital logistics solutions platform, Freight Tiger, for an investment of Rs 150 crore, approximately equivalent to $18 million. This agreement also includes a provision that allows Tata Motors to make an additional investment of Rs 100 crore over the next two years, based on the prevailing market value. This additional investment effectively positions Freight Tiger's valuation at approximately Rs 560 crore, or $67 million. In a stock exchange filing, Swapnil Shah, Founder and CEO of Freight Tiger, expressed his enthusiasm regarding the substantial backing and expertise that Tata Motors' investment brings to the company. He emphasized that this strategic partnership places Freight Tiger in a pivotal position to lead India's endeavors in reducing logistics costs to below 10% of the GDP, a significant improvement from the current figure of over 14%. Tata Motors underlined that its strategic investment in Freight Tiger will serve to expedite the company's initiatives aimed at enhancing effectiveness and efficiency within the truck and freight ecosystem. Freight Tiger operates as a digital platform, providing end-to-end solutions for the logistics value chain, facilitating cargo movement across the country. The platform acts as a unifying marketplace that connects shippers, carriers, logistics service providers, and fleet owners. Freight Tiger claims to facilitate more than 10 million trips on an annualized basis. Tata Motors has already introduced its 'Fleet Edge' connected vehicle platform, geared towards aiding fleet operations management. Among its roster of clients, Freight Tiger boasts esteemed names such as Saint Gobain, JSW Steel, and Apollo Tyres. This strategic investment is poised to strengthen Tata Motors' footprint in the evolving landscape of digital logistics solutions.