Tata Motors Ltd. on Monday announced the acquisition of a 26.79% stake in Freight Tiger for Rs 150 crore.
Tata Motors and Freight Commerce Solutions have signed a securities subscription agreement and a shareholder agreement for the acquisition of a 26.79% stake in Freight Tiger for a consideration of Rs 150 crore, the company said in its exchange filing.
The SSA also has the provision to enable Tata Motors to further invest Rs 100 crore over the next two years at the then-prevailing market value, the statement said.
The investment in Freight Tiger will accelerate Tata Motors’ initiatives to drive effectiveness and efficiency in the truck and freight ecosystem, eventually “bringing significant benefits to shippers, brokers and transporters who keep India moving”, it said.
Freight Tiger is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country. It has an authorised share capital of Rs 7.37 crore and had a turnover of Rs 19 crore in FY23.
Tata Motors earlier introduced its connected vehicle platform ‘Fleet Edge’ for aiding fleet operations with Freight Tiger, for an end-to-end digital ecosystem for the entire logistics value chain.
“Their (Freight Tiger) 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,” Girish Wagh, executive director at Tata Motors, said.
Shares of Tata Motors closed 0.21% lower at Rs 667.10 apiece before the announcement, as compared with a 0.24% decline in the benchmark Nifty 50 on Thursday.
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