The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value.
19 Oct 2023 | 8315 Views | By Autocar Professional Bureau
Tata Motors and Freight Commerce Solutions Private Limited (‘Freight Tiger’) have today 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 Rs 150 crore.
The SSA also includes a provision enabling Tata Motors to ...
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Tata Motors and Freight Commerce Solutions Private Limited (‘Freight Tiger’) have today 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 Rs 150 crore.
The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value.
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 company has already introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations management.
‘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 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 10 million trips on annualised basis and has been successfully integrating and ironing out inefficiencies in cargo movements over the last 7 years.
The closure of transaction is subject to satisfaction of customary condition precedents.
Girish Wagh, Executive Director, Tata Motors Ltd commented, “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 digitising the logistics industry. Their vision is aligned with ours, as we strive to improve the efficiency and sustainability of road logistics. Together, we will create new opportunities for growth and value creation for our customers, partners and stakeholders," he added.
Swapnil Shah, Founder and CEO of ‘Freight Tiger’, added, "Software- led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders. We do
this by building trust and facilitating collaboration across the logistics value chain. 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%.”