Tata plans leadership revamp at BigBasket, says report; CEO Hari Menon 'rubbishes' claims

BigBasket has rolled out its 10-minute delivery service, BB Now, and Tata Digital is revamping the app to evolve into a multi-category platform rather than focusing solely on groceries.

Tata Group is preparing for a leadership transition at BigBasket as the grocery e-tailer’s founders look to step back from daily operations, an Economic Times report said on Tuesday. CEO Hari Menon, whose five-year term is nearing its end after Tata’s acquisition of the Bengaluru-based firm in 2021, has initiated discussions on succession planning, the report added.

People familiar with the matter told ET that Menon has been working with the board over recent months to identify potential successors. Tata Sons is expected to bring in a new chief executive to sharpen BigBasket’s competitive edge in the quick commerce space, where it faces strong rivals such as Blinkit, Swiggy Instamart, and Zepto.

However, the company rejected the claims made in ET's report, with founder Menon saying it is 'rubbish'.  The full response of the company has been posted at the end.

BigBasket was set up in 2011 by Menon along with Vipul Parekh, VS Sudhakar, Abhinay Choudhari, and VS Ramesh as a scheduled delivery service. At present, Parekh oversees finance and marketing, while Ramesh leads logistics and supply chain. Choudhari exited the company after Tata’s entry. ET noted that Tata Digital, a fully owned arm of Tata Sons, picked up a 64.3% stake in BigBasket’s B2B entity, Supermarket Grocery Supplies, in 2021 through both primary and secondary deals. The company’s last known valuation stood at $3.2 billion, following a $200 million fundraise from Tata Digital three years ago.

When contacted by ET, a Tata Group spokesperson declined to comment, and queries to Menon went unanswered.

BigBasket denies report

BigBasket, in a statement clarifying its position, said its founders are not bound by any exit timelines and their commitment to the company remains "unwavering". Moreover, the company has not discussed any plans of succession with the board and the current leadership structure "remains intact", the Tata group firm said. The company also has no plans to appoint a new CEO and no formal process has been initiated for that, it said.

Read the full statement here