27 percent stake in Freight Tiger to be acquired by Tata Motors for Rs 150 Cr
Tata Motors revealed that it had reached an agreement to pay Rs 150 crore ($18 million) for a 26.79% stake in the Freight Tiger platform for digital logistics solutions. The agreement also contains a clause that permits Tata Motors to make additional investments totalling Rs 100 crore over the following two years, at the then-current market value.
The estimated value of Freight Tiger comes to about Rs 560 crore ($67 million).
“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%,” said Swapnil Shah, founder and CEO of Freight Tiger in a stock exchange filing.
According to Tata Motors, the company’s initiatives to boost effectiveness and efficiency in the truck and freight ecosystem will be accelerated by its strategic investment in Freight Tiger.
A digital platform called Freight Tiger offers complete logistics value chain solutions for the transportation of cargo throughout the nation. The platform creates a single marketplace by bringing together shippers, carriers, logistics service providers, and fleet owners.
In order to help with fleet operations management, Tata Motors has already unveiled its connected vehicle platform, called “Fleet Edge,” which claims to facilitate more than 10 million trips annually.
Saint Gobain, JSW Steel, and Apollo Tyres are a few of its customers.
The company claims that, through a network of more than 400 shippers and more than 150 logistics service providers (LSPs), it processes 4% of all freight in India.
Florintree Infra helped Freight Tiger acquire $6.5 million in September 2021. Aroa Ventures, the family office of Oyo founder Ritesh Agarwal, also took part. Before that, the business raised $8 million in Series A funding in 2019 under Lightspeed’s leadership.
Despite not having yet submitted its annual report for FY23, Freight Tiger reported revenues of Rs 15.12 crore and losses of Rs 41.62 crore in FY22.
