Tata Motors acquires 27% in digital platform Freight Tiger
Mumbai: In an effort to improve cost efficiency, Tata group’s automobile arm Tata Motors Ltd, on Thursday, announced its plan to acquire a 26.79% stake in Freight Tiger, a digital platform under Freight Commerce Solutions Pvt. Ltd, which is engaged in offering logistics solutions for cargo movement.
Freight Tiger, a startup backed by Lightspeed Ventures, Shriram Transport Finance, and Moonstone Capital Partners, claims that its logistics solutions can reduce average logistics cost by 12%, lead to a 32% increase in average productivity and increase the client’s margins by 2-3%. Tata Motors’ annual reports revealed that the auto giant’s expenses over freight, transportation and port charges have been surging over the past few years.
Tata Motors reported a 20.2% surge in freight, transportation, port expenses at ₹7,548 crore in FY2023 as against ₹6,278 crore in FY2022, ₹5,716 crore in FY2021, and ₹6,484 crore in FY2020. According to Thursday’s statement, Tata Motors will invest ₹150 crore in Freight Tiger for the 26.79% stake, and will have an option to invest an additional ₹100 crore over the next two years in the Mumbai-headquartered logistics solutions firm.
“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," said Girish Wagh, Executive Director, Tata Motors Ltd.
In the joint statement, Freight Tiger said it connects shippers, carriers, logistics service providers and fleet owners to a single digital marketplace, facilitating easier freight management. “Together,
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