Bengaluru: As BigBasket prepares for a leadership transition amid pressure to reduce losses and strengthen its position in quick commerce, outgoing chief executive Hari Menon has acknowledged that the company was slow to embrace the 10-minute delivery model but insists it is now catching up rapidly.
Leadership Change
The online grocer will see Amit Nanda, a former Amazon India executive, take over as chief executive. Menon co-founded BigBasket in Bengaluru in 2011 along with Vipul Parekh and both will remain on the board. Menon turns 65 in November, at which point he would have reached the Tata Group's mandatory retirement age.
Challenges Ahead
Nanda's mandate is clear: arrest losses, strengthen BigBasket's position in the fast-growing quick commerce market and improve margins - no easy task for a business that has consumed significant capital since Tata Digital acquired a majority stake in 2021. BigBasket's performance has become a flashpoint in the wider governance battle at the top of the Tata Group.
Tata Trusts chairman Noel Tata has raised questions over losses at BigBasket and other new ventures. Last month, Tata Digital chief executive and BigBasket chairman Sajith Sivanandan presented a plan to the Tata Sons board, which included Noel, to cut losses across the digital portfolio. The losses at Tata Digital and other new ventures have been linked to Tata Sons chairman N Chandrasekaran's prospects for a third term - a matter that remains unresolved.
Menon dismissed concerns that funding scrutiny at Tata Digital could affect operations. "I'm just ignoring all the noise. Frankly, it doesn't impact us operationally at all," he said, adding that he has "absolute commitment from the chairman" on continued support for the business.
Quick Commerce Strategy
On quick commerce, Menon admitted he initially underestimated the model. "I was in complete denial mode at that point in time," he said. "I kept saying, why would somebody need anything in 10 minutes? But if I give it to you in 10 minutes, you'll gladly take it." The delay, coupled with BigBasket's decision to operate separate interfaces for scheduled grocery deliveries and quick commerce, cost the company valuable time, he said. "We probably lost six months there. We should have gone straight to one quick commerce door," Menon said, adding that the dual-door approach created confusion for new customers.
BigBasket currently operates over 900 dark stores and expects to cross 1,000 stores within two months.
Fresh Produce Strength
Despite the growing focus on quick commerce, Menon said one of BigBasket's biggest strengths remains its fresh produce business. "We chose to start with Fresh on Day One in every city. It was high risk, but the way it panned out was really one of my high points."
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About the Author: Shilpa Phadnis is an Editor (IT) and Business Journalist with over 15 years of experience covering IT, business, and startups, capturing the city's dynamic entrepreneurial ecosystem, GCCs, and new-age firms.
