Freight Tiger, a digital platform in the logistics attracting Rs 150 crore from Tata Motors, securing an impressive 26.79% stake in the company is a significant boost to the logistics sector and adds strong momemtum for ther companys’ growth story.
The significant development marks a strong milestone in the trajectory of the logistics and transportation sector in India, underlining the commitment towards a digitally advanced and efficient freight ecosystem.
The Securities Subscription Agreement (SSA) and Shareholders Agreement (SHA) have been inked by both parties to solidify Tata Motors’ acquisition in Freight Tiger, pending the fulfillment of customary conditions.
The agreement outlines provisions for potential additional investments of Rs 100 crore over the following two years at the prevalent market valuation, highlighting Tata Motors’ long-term commitment to the growth and expansion of Freight Tiger.
Freight Tiger‘s digital platform serves as a pivotal junction, seamlessly connecting shippers, carriers, logistics service providers, and fleet owners in a singular marketplace. Its diverse offerings, including software-as-a-service (SaaS) solutions, are designed to streamline various aspects of logistics operations, ranging from freight tracking, assignment, carrier matching, to documentation and payment processing.
Frieght Tiger leads Digital Logistics Pack
Acting as an advisor in this landmark transaction, Moguntia Capital GmbH further solidified Freight Tiger‘s position as an industry leader in digital logistics. The synergistic alliance with Tata Motors is expected to catapult Freight Tiger’s ambitions, enabling the company to spearhead efforts in reducing logistics costs to less than 10% of the GDP, a notable drop from the current figure of over 14%.
Swapnil Shah, the Founder and CEO of Freight Tiger, expressed enthusiasm about the collaboration with Tata Motors, citing their shared vision of establishing a unified national platform on an unprecedented scale. “We are excited to have Tata Motors as a strategic investor who shares our belief and vision to build a unified national platform at an unprecedented scale.
With such incredible backing and expertise, the company is strategically positioned to lead India’s efforts in reducing logistics costs to under 10% of GDP from over 14%,” he emphasized.
Girish Wagh, Executive Director at Tata Motors Ltd, emphasized the alignment of Freight Tiger’s vision with Tata Motors’ mission of enhancing the efficiency and sustainability of road logistics.
“We are excited to announce our partnership with Freight Tiger, a pioneer in digitizing the logistics industry. Their vision is aligned with ours, as we strive to improve the efficiency and sustainability of road logistics,” he remarked, underscoring the shared commitment to transforming the logistics landscape in India.
The strategic investment by Tata Motors is anticipated to drive significant advancements in the Indian logistics sector, fostering digital transformation and efficiency in the freight industry.
With Freight Tiger’s continued innovative solutions and Tata Motors’ commitment to cutting-edge technology, the collaboration is set to redefine the dynamics of the logistics value chain in the country.
