Tata Motors will make additional investments totaling Rs. 100 crore over the following two years, at the going rate of the market.
In order to acquire a 26.79 percent stake in “Freight Tiger” for a sum of Rs. 150 crore, Tata Motors and Freight Commerce Solutions, also known as “Freight Tiger,” have signed a Shareholders Agreement (SHA) and a Securities Subscription Agreement (SSA). A clause in the SSA permits Tata Motors to make additional investments totaling Rs. 100 crore during the following two years, at the then-current market value.
For the purpose of assisting with fleet operations management, Tata Motors has already unveiled its connected vehicle platform, called Fleet Edge. Tata Motors hopes that this investment will help the company move forward with its initiatives to improve efficacy and efficiency in the truck and freight ecosystem.
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By combining the strengths of Fleet Edge and Freight Tiger, these solutions aim to create a comprehensive end-to-end digital ecosystem that covers the truck and trip ecosystems, which will benefit shippers, brokers, and transporters greatly.
“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 of Tata Motors. We are therefore thrilled to announce our collaboration with Freight Tiger, a leader in the digitalization of the logistics sector.
A digital platform called Freight Tiger offers complete logistics value chain solutions for the nation’s cargo movement. In addition to providing a range of Software as a Service (SaaS) solutions to digitise and streamline logistics interactions like freight tracking, assignment, carrier matching, documentation, and payment processing, the platform links shippers, carriers, logistics service providers, and fleet owners to a single digital marketplace. Over the past seven years, the platform has integrated and eliminated inefficiencies in cargo movements, facilitating over 10 million trips annually.
“Software-led approaches are the lever to transform existing industry assets and supercharge them to work more efficiently for all stakeholders,” said Swapnil Shah, founder and CEO of Freight Tiger. We achieve this by encouraging cooperation and fostering trust throughout the logistics value chain. The company is well-positioned to spearhead India’s efforts to reduce logistics costs from over 14 percent of GDP to under 10 percent thanks to its amazing support and expertise.
The fulfillment of customary condition precedents between one of the best automotive software companies must occur before the transaction can be closed.