CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Tata’s BigBasket to battle Softbank-backed Grofers in India

By Munikoti Rochan

12:49, 24 November 2021

A BigBasket delivery agent with a customer, amid the Covid-19 lockdown in India
BigBasket aims to open 200 physical outlets across India by 2023 and 800 by 2026 – Photo: Shutterstock

Tata group-owned BigBasket, India’s largest online food and grocery store, announced Wednesday that it has opened its first brick-and-mortar store in the country, in Bengaluru city.

Customers can now shop on BigBasket’s website and pick up their order at its ‘Fresho’ stores, according to a Press Trust of India report published on CNBCTV18.com’s website. BigBasket aims to open 200 physical outlets across India by 2023 and 800 by 2026. These stores will offer high-quality products at extremely competitive prices.

The moves could pit BigBasket against domestic grocery delivery company Grofers. The Softbank Group and food delivery giant Zomato have invested in Grofers, which promises 10-minute deliveries to doorsteps in several cities.

Customer-first approach

“BigBasket has always striven to adopt a customer-first approach,” BigBasket’s co-founder and chief executive Hari Menon was quoted as saying in the report. The grocer has expanded to 40 cities in India and serves 12 million customer orders per month.

Menon said the Fresho stores will be “game changers” by allowing BigBasket to tap the hundreds of millions of customers who do not shop online. Customers will be attracted by the ease of purchasing fruits, vegetables and groceries as seamlessly as cash transactions at automated teller machines, creating a “new significant growth opportunity” for BigBasket.

Farm-to-fork programme

Menon also said that produce stocked at Fresho stores will be backed by the company's extensive 'Farmer Connect' programme, where BigBasket partners with over 30,000 growers nationwide.

TSLA

235.29 Price
-1.640% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.33

NVDA

453.45 Price
-3.090% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.49

AMC

7.48 Price
+7.700% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.07

GME

17.21 Price
+10.660% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.39

Customers will be able to trace their products back to the farmer who grew the fruits and vegetables.

The 10-minute promise

Previously, Grofers said in a 17 August blog post that it can ship more than 7,000 items of everyday essentials in Delhi, Gurugram, Mumbai, Bengaluru, Hyderabad, Kolkata, Jaipur, Ghaziabad, Noida and Lucknow.

“As we sign up more partners and keep building out our network, we are confident we will be under 10 minutes for the majority of the customers within the next 45 days,” the post added.

The Tata group, in a 28 May statement, said it is building a digital consumer ecosystem that will cater to consumer needs across categories in a unified manner, and that online food and grocery is an important part of this ecosystem. BigBasket logged a revenue of $1bn in 2020.

Read more: Zomato-backed Grofers eyes 10-minute grocery deliveries in India

 

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading