Tata Motors Buys 26% Stake In Logistics Startup TruckEasy

One of India’s leading commercial vehicle maker, Tata Motors Ltd, has acquired a 26% stake in logistics startup TruckEasy,  through Tata Motors Finance Holdings, a wholly-owned subsidiary of Tata Motors.
 
A tech-based freight aggregator owned by Loginomics Technologies Solutions Pvt. Ltd, TruckEasy was founded by Nikhil Thomas, Vikram Kodgi and Avinash Achar in May 2015.
 
Interestingly, Thomas and Kodgi have previously worked at Tata Motors in the logistics domain, apart from other areas within the company and other multinational firms.
 
TruckEasy is currently operational only in Bengaluru and claims to have serviced over 8,000 customers by more than 3,000 driver partners.
 
With this acquisition, “Tata Motors aims to gain a foothold in mobility services to be “future ready”, said a company spokesperson.
 
“The strategic investment would provide Tata Motors with an insight into the “rapidly-growing, technology-driven transformation” in the freight logistics domain and obtain “an understanding of the market dynamics in intra-city freight movement”, the company said.
Tata Motors is further looking to leverage the data analytics provided by TruckEasy on small commercial vehicles. This will further help the company in better customisation as well as bring better solutions to the market.
 
TruckEasy, on the other hand, will now have access to Tata Motors’ “wide network to grow the supply side” and “expand to multiple locations countrywide”, said Girish Wagh, president of the commercial vehicles unit, in a media statement.
 
Other notable players in this space are Rivigo, DHL’s SmarTrucking, BlackBuck, Locus, Locanix, 4Tigo Network among others. Here, Rivigo is one major competitor in the industry.
 
Rivigo has till date, raised close to $125 Mn funding in equity and debt finance. Rivigo reportedly has a fleet of 2,100 trucks and a pan-India network across 150 cities.
 
Additionally, SoftBank is looking to infuse $200 Mn in the Gurugram-based logistics startup which is likely to take Rivigo’s valuation to about $1 Bn, crowning it a Unicorn.
 
According to IBEF’s January 2018 report, The country’s logistics industry which is worth around $160 Bn is likely to touch $215 Bn in the next two years with the implementation of GST.
 
Also, according to Novonous market research, road freight is the largest transportation segment in India, constituting around 63% of the total freight movement. Further, inter-city logistics accounts for a massive 95% of road freight movement and, by 2020, freight transport market in India is expected to be worth $307.70 Bn.
Shoot

Trending News

HCL Technologies may buy back shares worth Rs 5,000 Cr at Rs 1,150 apiece

Ola starts making money on each ride, inches closer to profitability

Zomato debuts loyalty rewards program PiggyBank

Chinese fintech major WeCash plans India foray with a consumer lending product

Former eBay CEO Simon Smith to drive Ola's operations in Australia

Lending products to form 20% of Flipkart’s growth: Ravi Garikipati

How Automation Anywhere joined the billion-dollar-plus club

Amazon to push hyperlocal app for Big Prime Day Sales

Are you a business or an entrepreneur thinking to collaborate ?

Here's how Amazon is winning the online retail game. Again.

DIY investment app Sqrrl raises $1 million

Flipkart all set for a fashionable makeover

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities