Tata plans leadership change at BigBasket as CEO Hari Menon nears end of term

New Delhi: Tata Group is preparing for a leadership change at BigBasket as the online grocer’s founders gradually step back from day-to-day operations, according to a report in the Economic Times.

Chief Executive Officer Hari Menon, whose five-year term is nearing completion following Tata’s acquisition of the Bengaluru-based company in 2021, has begun succession discussions with the board. As per the report, Tata Sons is likely to bring in a new chief executive to strengthen BigBasket’s position in the quick commerce sector, where it competes with Blinkit, Swiggy Instamart, and Zepto.

BigBasket was founded in 2011 by Menon alongside Vipul Parekh, VS Sudhakar, Abhinay Choudhari and VS Ramesh as a scheduled grocery delivery service. Parekh currently oversees finance and marketing, while Ramesh heads logistics and supply chain. Choudhari exited the firm after Tata’s entry. In 2021, Tata Digital, a wholly owned subsidiary of Tata Sons, acquired a 64.3% stake in BigBasket’s B2B entity, Supermarket Grocery Supplies, through primary and secondary deals. The company’s most recent disclosed valuation was $3.2 billion, following a $200 million investment from Tata Digital that year, the report said.

Tata is seeking a chief executive with stronger operational experience to expand the business and provide reassurance to potential investors as BigBasket prepares for a new fundraising round. Despite being an early entrant in online grocery, its slower move into instant delivery allowed rivals to gain ground, the report added.

Earlier this year, Tata Sons had engaged Citi and Moelis to help raise external capital for both BigBasket and Tata Digital’s health venture, 1mg.

The leadership transition at BigBasket comes amid wider management changes across Tata Digital. The group has appointed Sajith Sivanandan, formerly president at Jio Mobile Digital Services, as Tata Digital’s new CEO. He is due to take charge in September, becoming the third chief executive since Tata Neu’s 2019 launch. His appointment follows the exit of Naveen Tahilyani earlier this year. According to the report, Sivanandan has been tasked with accelerating execution and preparing the business for growth.

Tata Sons’ annual report showed that revenue at its consumer-facing arm, Innovative Retail Concepts, fell 3% to Rs 7,673 crore in FY25, while revenue at Supermarket Grocery Supplies dropped 7% to Rs 2,227 crore. Losses at Innovative Retail Concepts widened to Rs 1,851 crore from Rs 1,267 crore a year earlier.

To respond, BigBasket has introduced its 10-minute delivery service, BB Now, while Tata Digital is overhauling the platform to evolve into a multi-category app rather than focusing only on groceries.