Shriram Transport Finance, a company that is a commercial vehicle financier, has acquired a minority stake of around 17 percent in logistics solutions startup Freight Tiger.
For this, the company has invested around ₹7 crore ($1 million) in the startup. According to the stock-listing filings, Shriram received 63,279 equity shares of ₹1,106 apiece, including a premium of ₹1,096.
This could be the first-ever external funding raised by the logistics startup. The company has not yet announced any funding round. It is not known how it is planning to use the raised funding.
Freight Tiger was founded in 2014 by Swapnil Shah. The startup has launched a mobile application for truck-owners, brokers and logistics companies. It helps them to increase their truck utilisation and get efficient loads.
On the other hand, Shriram Transport Finance is the commercial vehicle-financing arm of Shriram Capital — a part of financial services firm Shriram Group.
The logistics-tech sector in India has been witnessing increased investors interest. Earlier this month, Ecom Express raised around ₹192 crore from its existing investor Warburg Pincus.
Rivigo, a logistics startup that aims to build reliable and safer logistics network, is reportedly in talks with Japan-based SoftBank to raise around ₹641 crore in a new funding round.
Another logistics solutions provider Delhivery raised ₹200 crore from China’s Fosun International. Yebhi’s co-founder announced his new startup — Truxapp, which raised ₹19.7 crore in its Pre-Series A round.