Tata Motors, a prominent player in the Indian automotive industry, has made a significant move in the digital space by announcing its acquisition of a 27% stake in ‘Freight Tiger,’ a Software as a Service (SaaS) company specializing in end-to-end logistics solutions. This strategic investment, worth ₹150 crore, is a testament to Tata Motors’ commitment to leveraging technology to transform the logistics and transportation sector in India.
‘Freight Tiger,’ operated by Freight Commerce Solutions Pvt Ltd, is a digital platform designed to streamline and optimize the logistics value chain for cargo transportation within the country. The platform acts as a central marketplace connecting shippers, carriers, logistics service providers, and fleet owners, simplifying the process of finding, booking, and managing freight.
The partnership between Tata Motors and ‘Freight Tiger’ is aligned with the growing trend of digitization and automation in the logistics industry. By integrating digital solutions, such as freight tracking, assignment, carrier matching, documentation, and payment processing, ‘Freight Tiger’ has successfully facilitated over 10 million trips on an annualized basis. This substantial experience in the industry has enabled the platform to identify and address inefficiencies in cargo movements over the past seven years.
The collaboration not only strengthens ‘Freight Tiger’ but also benefits Tata Motors in multiple ways. Tata Motors has already introduced its connected vehicle platform, ‘Fleet Edge,’ aimed at enhancing fleet operations management. The strategic investment in ‘Freight Tiger’ is expected to accelerate Tata Motors’ efficiency in the truck and freight ecosystem.
Girish Wagh, Executive Director at Tata Motors, emphasized the significance of the partnership, saying, “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.” This collaboration aligns with Tata Motors’ vision of enhancing the efficiency and sustainability of road logistics.
Founder & CEO of ‘Freight Tiger,’ Swapnil Shah, expressed his enthusiasm about the partnership with Tata Motors. He highlighted the shared vision of building a unified national platform at an unprecedented scale. This platform aims to significantly reduce logistics costs in India, which currently stand at over 14% of the GDP, to under 10%.
Tata Motors’ investment in ‘Freight Tiger’ is not just a financial transaction; it signifies a commitment to embracing software-led approaches to improve the efficiency of existing industry assets and transform the logistics sector. By building trust and facilitating collaboration across the logistics value chain, this partnership aims to create an ecosystem that works more efficiently for all stakeholders involved.
Moreover, Tata Motors has an option to further invest ₹100 crore in ‘Freight Tiger’ over the next two years at the prevailing market value. This demonstrates Tata Motors’ long-term commitment to the success and growth of ‘Freight Tiger’ and its contribution to the digitization and optimization of the logistics sector in India.
Tata Motors’ strategic investment in ‘Freight Tiger’ reflects the growing importance of digitization and technology in the logistics industry. This collaboration is expected to create a comprehensive digital ecosystem that benefits various stakeholders in the logistics value chain, including shippers, brokers, and transporters. As both companies work together to drive efficiency and reduce logistics costs, the partnership holds the potential to significantly transform the Indian logistics landscape.