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Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, on Tuesday announced the acquisition of Locus, an AI-powered logistics technology company.
The move aims to enhance IKEA's home delivery experience and strengthen its digital logistics infrastructure worldwide.Locus, headquartered in the US and primarily operating from India, provides advanced logistics management solutions using artificial intelligence. Its platform offers route optimisation, real-time tracking, and intelligent resource allocation to streamline supply chain operations. The acquisition will help IKEA gain greater control over the fulfilment process, especially in last-mile delivery, and improve overall customer experience.Tolga Oncu, Head of IKEA Retail (Ingka Group), said the acquisition aligns with IKEA's commitment to improving every stage of the customer journey. "By bringing Locus's technology in-house, we are taking control of a crucial element in our fulfilment chain, allowing us to deliver with greater speed and flexibility to the many," he said.In India, where Locus has a major operational presence, the deal marks a significant step towards building a stronger and more efficient supply chain. Patrik Antoni, CEO of IKEA India, said the integration of Locus's technologies will make deliveries faster, more affordable, and sustainable. "This acquisition is an important step in becoming more accessible and staying relevant in a market that will continue to grow exponentially over the next few years," he said.The transaction comes as online sales accounted for 28 per cent of IKEA's total retail sales in FY24, up from 11 per cent in FY19. Parag Parekh, Global Chief Digital Officer for IKEA Retail (Ingka Group), said the acquisition supports the company's broader digital transformation. "Our vision is to create a better everyday life for the many, and that includes delivering products when and how customers want them. This acquisition strengthens the digital capabilities required to meet rising customer expectations while ensuring the quality and reliability IKEA is known for," Parekh said.Nishith Rastogi, Founder and CEO of Locus, described joining the IKEA family as a "historic milestone" for the company. "This partnership preserves our independence and ensures our perpetuity, while unlocking the scale and resources to serve our global enterprise customers with unmatched research and development," Rastogi said.Following the acquisition, Locus will remain operationally independent under its own leadership and brand, continuing to serve external enterprise clients while supporting IKEA's logistics transformation.Goldman Sachs served as the exclusive financial advisor to Ingka Investments in connection with the transaction.Ingka Group operates IKEA retail channels in 31 markets, accounting for about 90 per cent of IKEA's global retail sales. Through Ingka Investments, the company focuses on long-term investments across strategic areas, including logistics, renewable energy, circular business models, and sustainable food production. (ANI)
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