IKEA infuses ₹850 crore into India unit, plans to use it for omnichannel strategy.

Swedish furniture maker IKEA has infused ₹850 crore in its India entity. The company plans to use it to support its omnichannel expansion plans.

Ingka Pro Holding BV and Ingka Holding Overseas BV, IKEA’s parent company and its controlled entities have bought 85 crore shares in Ikea India Private Limited for ₹10 each, financial data accessed by business intelligence platform Tofler showed. 

In response to BusinessLine’s query to understand what the money would be used for, an IKEA spokesperson said, “India is identified as a future growth market for Ingka group. The fund infusion received is part of the ₹10,500 crore announced initially. This new infusion will support our omnichannel expansion plans in India to enable us to reach many more people in India for their life at home needs with our affordable and sustainable products.”

IKEA has been on a spree of expanding its presence in India through both online, and offline presence. 

Exactly two months ago, IKEA opened its first store in Mumbai. The first-of-a-kind Worli City Store is spread over 80,000 sq. ft. Speaking to BusinessLine earlier, Per Hornell, Expansion Manager for IKEA India, had said that from a 2030 perspective, India is in its top 10 markets. 

HBL