Ingka Group Acquires US-Based AI-Powered Logistics Software Co. Locus

Ingka Investments, the investment arm of Ingka Group, has acquired Locus, US-based leading logistics technology company. Locus operates mostly out of India where the majority of the co-workers are based, said the company in a statement.

This strategic investment strengthens IKEA digital capabilities, giving the retailer greater control over a critical moment in the customer journey, IKEA said.

According to the company, historically, IKEA has relied on multiple third-party providers for these essential services. The acquisition of Locus represents a significant move by Ingka Group towards making shopping and delivery even smoother for its customers.

Locus offers AI-powered logistics management platform, featuring advanced route optimisation, real-time tracking, as well as the smart use of vehicles and resources. By integrating these capabilities, Locus will better enable Ingka Group to enhance efficiency across the supply chain - from capacity management and optimisation to last-mile execution.

The partnership not only strengthens how IKEA delivers home furnishings to customers globally but also supports their ambition to create a faster and smarter distribution network, it saild.

Commenting on the same, Tolga Öncü, Head of IKEA Retail (Ingka Group), said, "This acquisition aligns perfectly with our commitment to improving the customer journey at every touchpoint. By bringing Locus's technology in-house, we're taking control of a crucial element in our fulfilment chain, allowing us to deliver with greater speed and flexibility to the many."

The company said, Locus’ technology will help reduce complexities, provide seamless integration between systems and make IKEA’s logistical operations future-ready to handle the expected surge in home delivery volumes. The technology will not only enhance IKEA’s delivery logistics to customers in India but will also improve the overall customer experience.

Patrik Antoni, CEO, IKEA India said, “At IKEA India we are always looking at new solutions to build a stronger and seamless supply chain in India that will help us reach many more people. The integration of Locus’ technologies will allow us to deliver more affordable, sustainable and faster services to our customers. 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.”

This acquisition comes at a critical time, with online sales representing 28% of total IKEA retail sales in FY24, up from 11% in FY19. The integration of Locus’ technology will further strengthen IKEA's ability to meet this growth, complementing earlier strategic technology investments such as Made4net, which will help enhance the company’s warehouse management, and TaskRabbit, which expanded furniture assembly services.

Following the acquisition, Locus will remain operationally independent while continuing to grow its services for partners beyond Ingka Group. The approach supports ongoing innovation and growth for both companies whilst contributing to the IKEA broader digital transformation journey.