Tata Motors Doubles Down on Digital Logistics with ₹120 Crore Fresh Investment in Freight Tiger

Tata Motors has made a strategic move to strengthen its grip on India's digital logistics sector by investing an additional ₹120 crore in Freight Tiger, bringing its total investment in the AI-powered logistics platform to ₹270 crore. The fresh investment is expected to increase Tata Motors' stake in Freight Commerce Solutions Private Limited to 42-46% on a fully diluted basis. 

This latest infusion follows Tata Motors' initial ₹150 crore investment in October 2023, demonstrating the commercial vehicle giant's commitment to transforming India's fragmented logistics landscape through technology. The company also acquired 49,500 equity shares in Freight Tiger through a secondary purchase worth approximately ₹14 crore. 

Market Responds Positively to Strategic Move

Tata Motors shares closed at ₹680.20 on the NSE on Monday, gaining 1.14% or ₹7.70 from the previous session's close of ₹672.50. The stock traded in a range of ₹666.65 to ₹683.50 during the session, with volumes reaching 15 million shares. Despite the positive reaction to today's announcement, the stock has declined 30% over the past year due to challenges at its luxury arm Jaguar Land Rover. 

The investment aligns with Tata Motors' vision to create an integrated digital ecosystem for India's logistics sector. Freight Tiger, founded in 2014, currently handles 5% of India's total freight movement and connects over 450 shippers with 2,600+ logistics providers across 1,40,000 locations. 

"This investment accelerates our AI-powered future, where we're creating a pioneering logistics intelligence network by combining our digital ecosystem with Tata Motors' market-leading fleet," said Swapnil Shah, Founder and CEO of Freight Tiger. 

The Mumbai-based platform reported revenues of ₹26.6 crore in FY25, up from ₹17.8 crore in FY24. Major clients include Saint-Gobain, JSW Steel, Asian Paints, Amul, and Zepto. 

Strengthening Commercial Vehicle Strategy

For Tata Motors, India's largest commercial vehicle manufacturer, the partnership represents a crucial step toward digitizing the country's logistics sector. The company's existing Fleet Edge platform, combined with Freight Tiger's capabilities, aims to create an end-to-end solution covering both vehicle and trip management. 

"We're not just funding technology - we're fundamentally reimagining logistics through artificial intelligence," said TV Swaminathan, Vice President and Head of Digital Business at Tata Motors Commercial Vehicles. 

The deal comes as Tata Motors prepares for its business demerger, with the commercial vehicle division set to list separately as TML Commercial Vehicles Limited in November. This strategic focus on digital logistics solutions positions the company to capture greater value from India's growing e-commerce and quick-commerce sectors. 

Freight Tiger plans to launch several ground-breaking AI innovations in Q4 2025, including a Vehicle Supply Density Platform and Next-Generation Dispatch Planning modules. The company aims to handle 20% of India's freight movement by 2028, positioning itself as the digital infrastructure backbone for the country's economic growth. 

The investment reflects the growing importance of technology in India's logistics sector, where companies are increasingly adopting AI-driven solutions to reduce costs and improve efficiency in the world's third-largest economy.