Tata Motors on Thursday announced that it has entered into an agreement to acquire a 26.79% stake in digital logistics solutions platform Freight Tiger for Rs 150 crore (approximately $18 million). The agreement also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value.
This roughly translates Freight Tiger’s valuation to around 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.
Tata Motors added that the strategic investment in Freight Tiger will accelerate the company’s initiatives in driving effectiveness and efficiency in the truck and freight ecosystem.
Freight Tiger is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country. The platform connects shippers, carriers, logistics service providers and fleet owners to a single marketplace.
The platform claims to facilitate more than 10 million trips on an annualised basis and Tata Motors has already introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations management.
Its clients include Saint Gobain, JSW Steel, and Apollo Tyres.
The firm claims to process 4% of India’s total freight on its platform with a network of more than 400 shippers, and over 150 logistics service providers (LSPs).
In September 2021, Freight Tiger scooped up $6.5 million led by Florintree Infra. Oyo founder Ritesh Agarwal’s family office Aroa Ventures also participated in it. Before that, the firm had raised $8 million in Series A led by Lightspeed in 2019.
While Freight Tiger is yet to file its annual report for FY23, it recorded revenue of Rs 15.12 crore in FY22 with a loss of Rs 41.62 crore.
