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Tata Group-owned Tata Motors has signed a Securities Subscription Agreement (SSA) and a shareholders agreement (SHA) with Freight Commerce Solutions Private Limited, doing business as Freight Tiger.
As part of the deal, Tata Motors will acquire a 26.79% stake in the logistics platform for Rs 150 crore. Additionally, the SSA has a provision that allows the automotive giant to invest another Rs 100 crore over the forthcoming two years, based on the market value at that time.
What does Freight Tiger do?
Freight Tiger operates as a digital platform that delivers comprehensive logistics solutions for cargo movement across India.
The startup acts as a bridge, connecting shippers, carriers, logistics service providers, and fleet owners on a unified digital marketplace. This not only simplifies the process of finding and booking freight but also offers a suite of Software as a Service (SaaS) tools, according to the company's statement.
The tools digitize and optimize logistics interactions, including freight tracking, carrier matching, documentation, and payment processing. With a track record of facilitating over 10 million trips annually, Freight Tiger has been instrumental in streamlining cargo movements for the past seven years.
Accelerating the company's initiatives
Tata Motors has already introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations management. Tata Motors' strategic investment in ‘Freight Tiger’ will accelerate the company's initiatives in driving effectiveness and efficiency in the truck and freight ecosystem.
The partnership will create a holistic digital ecosystem for the entire logistics value chain.
The company said the integrated approach will cater to both the truck and the trip ecosystem, promising substantial benefits for shippers, brokers, and transporters, the backbone of India's logistics movement.
Mr. Girish Wagh, Executive Director, Tata Motors, said, “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. Hence, we are excited to announce our partnership with Freight Tiger, a pioneer in digitizing the logistics industry."
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