Ingka Group Acquires Locus To Enhance IKEAs Home Delivery Operations With AI-Powered Logistics

Locus provides an advanced logistics platform that uses artificial intelligence to plan, track, and optimize deliveries in real time. The system groups orders, predicts routes, and minimizes idle driving time—functions that IKEA previously managed across several third-party providers. The acquisition is expected to simplify logistics operations and cut delivery expenses by about €100 million ($117 million) a year globally.

“This acquisition aligns perfectly with our commitment to improving the customer journey at every touchpoint,” said Tolga Öncü, Head of IKEA Retail (Ingka Group). “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.”

Online sales now account for 28% of IKEA retail sales, up from 11% in 2019. The new technology will support this growth by improving visibility, efficiency, and responsiveness in last-mile delivery. It complements Ingka’s earlier digital investments in Made4net (warehouse management) and TaskRabbit (assembly services).

“Our vision is to create a better everyday life for the many, and that includes delivering products when and how customers want them,” said Parag Parekh, Global Chief Digital Officer for IKEA Retail. “This acquisition strengthens the digital capabilities required to meet rising customer expectations, while ensuring the quality and reliability IKEA is known for.”

Locus will remain operationally independent, continuing to serve clients beyond Ingka Group.

“Joining the IKEA family marks a historic milestone for Locus and the customers we serve,” said Nishith Rastogi, Founder and CEO of Locus. “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.”

Locus’s technology will first be piloted in the U.S. and U.K., with plans to roll out globally. IKEA said the platform’s automation and predictive routing would improve delivery flexibility, enable live tracking for customers, and reduce emissions by optimizing fleet use.

Ingka Investments, the group’s investment arm, led the deal. Financial terms were not disclosed, but Locus was previously valued at $300 million in its 2021 funding round, backed by investors including GIC, Tiger Global, and Qualcomm Ventures.

The acquisition follows Ingka’s continued expansion in the U.S., including a recent $213 million real-estate purchase in Manhattan and a $2.2 billion multiyear investment program aimed at growing its retail and fulfillment footprint despite tariff pressures.