India’s online grocery sector is witnessing a dramatic shake-up as competition in quick commerce intensifies. Once the undisputed leader of online grocery delivery, BigBasket is now scaling back its footprint in a bid to strengthen profitability rather than chase aggressive expansion. Under newly appointed CEO Amit Nanda, the Tata Digital-owned company is reportedly focusing on around 40 profitable markets instead of its earlier presence across 76 cities. While BigBasket has not confirmed the exact number, it has acknowledged that it is recalibrating its operations to improve efficiency and long-term sustainability. The move marks a significant strategic shift as the company adapts to a market increasingly defined by speed, convenience and intense competition.
For over a decade, BigBasket dominated online grocery retail by encouraging planned weekly shopping. Customers typically placed large orders worth ₹1,200 to ₹1,300, which were delivered through a highly integrated supply chain of warehouses, scheduled deliveries and private-label products. However, consumer behaviour has changed dramatically over the past few years. Instead of making one large weekly purchase, shoppers now place multiple small orders throughout the week, expecting groceries and daily essentials to arrive within minutes.
This behavioural shift created an entirely new competitive landscape dominated by Blinkit, Zepto and Swiggy Instamart. These companies built their businesses around dense networks of dark stores, rapid deliveries and high order frequency. BigBasket, on the other hand, entered the quick commerce race relatively late through BB Now. Co-founder Hari Menon himself admitted that he initially underestimated consumer demand for 10-minute deliveries, a delay that allowed competitors to build significant market share and reshape customer habits.
Unlike many of its rivals, BigBasket also operated under Tata Group’s emphasis on financial discipline. While competitors aggressively spent billions on discounts, customer acquisition and rapid dark store expansion, BigBasket adopted a more measured approach. Although it expanded its quick commerce network to around 700 dark stores and diversified into categories such as electronics through Croma, matching the pace of competitors proved difficult.
The financial pressure has become increasingly evident. Parent company Supermarket Grocery Supplies reported a 42% jump in consolidated net loss to ₹2,006.8 crore in FY25, while operating revenue declined 2% to ₹9,866.7 crore. Consumer business losses widened nearly 47% to ₹1,851 crore, highlighting the growing cost of competing in India’s fiercely competitive quick commerce market.
The leadership transition from founder Hari Menon to former Amazon executive Amit Nanda reflects a broader change in priorities. Rather than pursuing nationwide expansion, Tata Digital wants BigBasket to concentrate investments in densely populated urban markets where higher order density and healthier unit economics can support sustainable profitability. The restructuring also aligns with Tata Digital’s wider strategy of improving capital efficiency across its consumer businesses after fresh investments from Tata Sons.
Despite scaling back, BigBasket is not abandoning the market. Instead of matching rivals discount for discount, the company is betting on its strengths, including trusted private labels such as Fresho and BB Royal, a broader grocery assortment, and value-driven bulk purchases. This differentiated approach could help improve margins while serving loyal customers.
However, the strategy comes with risks. Reducing its presence in smaller markets could allow competitors to strengthen their foothold, making it harder for BigBasket to regain lost ground in the future. The company’s success will ultimately depend on whether operational discipline and profitability can outweigh the advantages of scale in India’s increasingly unforgiving quick commerce battle.
Nandita Sharma
