On October 19, Tata Motors and Freight Commerce Solutions Private Limited, also known as “Freight Tiger,” signed a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA) for Tata Motors to acquire a 26.79% share in “Freight Tiger” in exchange for a payment of Rs 150 Crores. The SSA also has a provision enabling Tata Motors to invest Rs 100 Crores over the next two years at the market value now in effect.
The digital platform known as “Freight Tiger” offers solutions for the entire value chain of the logistics process, from beginning to end, for cargo movement across the country. Shippers, carriers, logistics service providers, and fleet owners can connect to a single digital marketplace through this platform. This makes it simple to find, book, and manage freight while also providing a variety of Software as a Service (SaaS) solutions to digitise and streamline various logistics interactions, such as freight tracking, assignment, carrier matching, documentation, and payment processing. The platform is responsible for the facilitation of more than 10 million journeys on an annualised basis. It has been integrating and ironing out inefficiencies in freight transfers over the past seven years.
To assist with fleet operations management, Tata Motors has already launched its connected vehicle platform known as “Fleet Edge.” The strategic investment made by Tata Motors in “Freight Tiger” would speed up the company’s endeavours to improve the ecosystem’s effectiveness and efficiency for trucks and freight. These cutting-edge solutions (‘Fleet Edge’ and ‘Freight Tiger’) aim to create a comprehensive end-to-end digital ecosystem for the entire logistics value chain. This ecosystem will cover the truck and trip ecosystems, significantly benefiting shippers, brokers, and transporters.
The transaction’s completion is contingent on the fulfilment of customary conditions precedents.
According to Swapnil Shah, the Founder and CEO of the company known as “Freight Tiger,” software-led initiatives are the lever that may convert existing industrial assets and supercharge them to perform more efficiently for all stakeholders. The organisation accomplishes this by cultivating trust and facilitating collaboration throughout the logistics value chain. Having the backing and expertise of TATA Motors, the company is strategically positioned to lead India’s efforts in decreasing logistics costs from over 14% of GDP to under 10% of GDP, he added.
“Freight Tiger” is currently the largest software-enabled neutral freight network in India, according to the release. The organisation has developed a digital platform, an intelligent operating system, and on-site expertise to improve each phase of the logistics procedure. It facilitates the transportation of materials to clients with complete visibility, predictability, and velocity, all at a reduced expense.
Three products from Freight Tigers facilitate this procedure. The system comprises a visibility and cloud-based TMS (Transportation Management Software) platform, a freight assignment platform that enables shippers to procure freight efficiently through logistics service providers, and a marketplace platform that seamlessly coordinates the supply and demand of trucks across India.
According to the company, their platform handles 4% of the total freight in India and serves over 90,000 locations, more than 400 transporters and 1,500 logistics service providers (LSPs). By 2028, the organisation intends to facilitate 20% of the nation’s freight movement on its platform.
Institutional investors in Freight Tiger include Lightspeed India Partners, Florintree Advisors, the Venture Capital Arm of Eastern Pacific Shipping, and Moguntia Capital affiliates.
