Ingka Group acquires AI logistics firm Locus to boost IKEA deliveries

Ingka Group, the largest IKEA retailer, has acquired Locus, an AI-powered logistics software company based in the United States and operating mainly from India. The acquisition was announced by Ingka Investments, the group’s investment arm, to strengthen IKEA’s digital logistics capabilities. The move aims to improve how IKEA manages and delivers home furnishing orders across global and Indian markets.

Locus provides an AI-driven logistics management platform that enables route optimisation, real-time tracking, and smart use of vehicles and resources. Integrating this technology will help Ingka Group take greater control of the customer fulfilment process, which was previously handled by several third-party providers. The investment will help IKEA manage capacity, optimise resources, and execute last-mile deliveries more effectively.

According to Tolga Öncü, Head of IKEA Retail at Ingka Group, bringing Locus in-house will allow IKEA to improve delivery speed and flexibility. He said the move supports IKEA’s focus on enhancing the customer journey at every stage. In India, the partnership is expected to help IKEA strengthen its supply chain, simplify logistics, and prepare for growing demand in home deliveries.

Patrik Antoni, CEO of IKEA India, said the integration of Locus technology will help the company provide more affordable, sustainable, and faster delivery services. He added that this step supports IKEA’s goal of becoming more accessible in a rapidly expanding Indian market.

The acquisition aligns with IKEA’s broader technology investments. In recent years, the company has increased its focus on digital transformation, with online sales rising from 11 per cent of total retail sales in 2019 to 28 per cent in 2024. The integration of Locus will complement other digital tools such as Made4net for warehouse management and TaskRabbit for furniture assembly services.

Parag Parekh, Global Chief Digital Officer for IKEA Retail, said the acquisition will strengthen IKEA’s ability to meet growing customer expectations for reliable and timely deliveries. He noted that digital innovation is key to fulfilling IKEA’s mission of creating a better everyday life for the many.

Locus founder and CEO Nishith Rastogi said joining Ingka Group will allow Locus to expand its product, engineering, and revenue teams while continuing to serve its existing global customers. He added that Locus will remain operationally independent after the acquisition, continuing to innovate and support both IKEA and other partners.