BigBasket trims footprint under new profitability mandate

A pullback for profitability

BigBasket, the Tata owned online grocer, is retreating from years of aggressive expansion under a new mandate to prioritise profit over scale, according to Inc42. Reports cited in the piece said Tata Digital wants the company to concentrate on around 40 profitable markets, down from 76 cities, though BigBasket disputed the figure, calling it drawn from a speculative report it never confirmed.

The strategy shift comes with a leadership change. Cofounder Hari Menon stepped down after 15 years running the business, and Amit Nanda, a former Amazon executive, has taken over as chief executive with an explicit profitability brief. The move signals that Tata is done chasing footprint for its own sake in a segment where losses have piled up.

Losses and a shrinking edge

The financial pressure is clear. Parent Supermarket Grocery Supplies reported a 42% jump in consolidated net loss to Rs 2,006.8 crore in FY25, with consumer business losses widening about 47% to Rs 1,851 crore and operating revenue slipping 2% to Rs 9,866.7 crore. BigBasket runs roughly 700 dark stores under its legacy model, well short of Blinkit’s 2,200 plus network and its command of nearly 46.5% of the quick commerce market, as average order values slid toward smaller, more frequent baskets.

Why it matters for Indian brands: BigBasket’s retreat shows that even a Tata backed grocer must trade reach for margin, and suppliers that relied on its wide city coverage may need to reroute volumes to Blinkit, Zepto and Instamart in the markets it exits.