Tata Motors and Freight Commerce Solutions Private Limited (‘Freight Tiger’) have signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) for the acquisition of 26.79% stake in ‘Freight Tiger’ for a consideration of INR 150 crore.
The SSA also includes a provision enabling Tata Motors to further invest INR 100 crore over the next two years, at the then prevailing market value.
Tata Motors has already introduced its connected vehicle platform ‘Fleet Edge’ to aid 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 closure of transaction is subject to satisfaction of customary condition precedents. Moguntia Capital GmbH acted as an advisor to Freight Tiger in this transaction.
Girish Wagh, Executive Director, Tata Motors Ltd, said the company believes that by playing a larger and deeper role in bringing all the stakeholders together to improve road logistics efficiency, it can create value for our core customers: the fleet owners.
Swapnil Shah, Founder & CEO of ‘Freight Tiger’, stated that these software-led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders.
‘Freight Tiger’ is a digital platform that provides end-to-end logistic 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 ten million trips on an annual basis and has been successfully integrating and ironing out inefficiencies in cargo movements over the last seven years.
Also Read