Tata group’s automobile company Tata Motors Ltd. is all set to take over 26.79% stake in Freight Tiger, a digital platform under Freight Commerce Solutions Pvt. Ltd. The move will enable the company to reduce cargo service costs.

Freight Tiger is a Mumbai-headquartered logistics solutions firm, which offers logistics solutions for cargo movement with the backing of Lightspeed Ventures, Shriram Transport Finance, and Moonstone Capital Partners.

It is reported that with the company’s logistics solutions, clients can reduce average logistics cost by 12%, with a 32% rise in average productivity and a 2-3% increase in margins.

According to Thursday’s statement, Tata Motors will purchase 26.79% Freight Tiger stake for Rs. 150 crore and make an additional investment of Rs. 100 crore over the next two years.

It is in response to rising freight charges that Tata Motors opted for a stake in Freight Tiger as the company had witnessed a 20.2% increase in their freight, transportation and port charges taking port expenses to Rs. 7548 crores in FY 2023 from Rs. 6278 crore in FY 2022.

“At Tata Motors, we are committed to transforming the road logistics industry with our innovative solutions and services. 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, Tata Motors Ltd.

In the joint statement, Freight Tiger said it brings shippers, carriers, logistics service providers and fleet owners to a single digital marketplace, making freight management easier.