Troubles seem to be far from over for Tata Digital-run BigBasket.

Once the poster child of India’s online grocery delivery finds itself entangled in deepening losses, shrinking revenues and sustained churn in user base amid raging murmurs of a corner office crisis.

The company was seen as a crown jewel when Tata Sons acquired a majority stake in BigBasket in 2021, betting on grocery as its anchor in the digital ecosystem. Grocery has always been a high-frequency category central to Indian households and BigBasket, then the market leader, seemed to be the perfect bet for the Tatas.

Four years on, the scenario looks entirely different. For FY25, BigBasket’s parent Supermarket Grocery Supplies Pvt Ltd reported a staggering 42% increase in net loss to INR 2,006.8 Cr, with revenues dipping 2% to INR 9,866.7 Cr.

Industry analysts blame it on the dark store economics of quick commerce. Managing dark stores for dleoivery often weighs too high on the coffers of a company because of high fixed costs that may include rent, salary liabilities and inventory management, with expensive last-mile delivery and heavy customer discounts, although a dark store typically caters to a relatively small geography.

Until order density increases, the average order value grows and margins improve, each order costs more than what it fetches for the company. While the quick commerce plunge in 2022 kept building pressure on the margins, it didn’t balance it with substantial increase in demand because of fewer customer additions. This only widened the fiscal gap.

To bridge this gap, BigBasket expanded from groceries to iPhones and gadgets, sometimes undercutting Amazon and Flipkart, but industry experts believe this only increased the losses without creating stickiness.

The flight of users increased when its value-driven, dependable online grocery heritage watered down in the heat of agile quick commerce players like Blinkit and Swiggy Instamart, and under pressure from rooted ecosystem companies such as Amazon.

No wonder, investors began shying away. Even holding company Tata Digital was found digging its heels when it came to doubling down on investments in BigBasket, leaving external investors more sceptical. “If the group itself isn’t fully committed, why would outsiders take the risk?” reasoned a venture capital partner, refusing to be identified.

Balance Sheet Remains A Pain Point

BigBasket’s biggest challenge in the basket of woes is its balance sheet.

The company could never make profit, but the distance between its ambition and financial reality expanded sharply in FY25.

Parent firm Supermarket Grocery Supplies Pvt Ltd saw its

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