On October 19, Tata Motors announced its decision to acquire a 27% stake in the Software as a Service (SaaS) platform ‘Freight Tiger’ for ₹150 crore. The deal also includes an option for Tata Motors to invest an additional ₹100 crore over the next two years at the prevailing market value.
Freight Tiger, operated by Freight Commerce Solutions Pvt Ltd, is a digital platform offering end-to-end logistics solutions for cargo movement in India, connecting shippers, carriers, logistics service providers, and fleet owners.
Freight Tiger’s platform serves as a digital marketplace, streamlining freight-related activities, including tracking, assignment, carrier matching, documentation, and payment processing. The platform, with over 10 million annualized trips, has been successful in digitizing and enhancing the efficiency of cargo movements over the past seven years.
Tata Motors, having introduced its connected vehicle platform ‘Fleet Edge’ for fleet operations management, views this strategic investment in Freight Tiger as a means to further enhance efficiency in the truck and freight ecosystem. The collaboration is expected to create a comprehensive end-to-end digital ecosystem for the entire logistics value chain.
Freight Tiger’s CEO, Swapnil Shah, expressed excitement about Tata Motors’ strategic investment, emphasizing the alignment of vision to build a unified national platform. The goal is to significantly reduce logistics costs in India from over 14% of GDP to under 10%.
Tata Motors sees the partnership with Freight Tiger as an opportunity to bring stakeholders together and improve road logistics efficiency, creating value for fleet owners. This investment, combined with Tata Motors’ ‘Fleet Edge’ solution, aims to provide comprehensive digital solutions covering both the truck and trip ecosystem.
Tata Motors’ investment in Freight Tiger underscores the potential of the collaboration, joining other institutional investors such as Florintree Advisors, Lightspeed India Partners, and the Venture Capital Arm of Eastern Pacific Shipping.
On the stock market, Tata Motors shares closed 0.01% higher at ₹668.45 apiece on October 19.
