As part of its digital transformation strategy, Ingka Group, the largest retailer in the Ikea franchise, has acquired the U.S.-based artificial intelligence logistics company Locus for an undisclosed amount. The move aims to enhance Ikea’s delivery network by bringing advanced AI-driven logistics capabilities in-house.

Before this deal, Ikea relied on several third-party logistics providers to manage deliveries. With Locus’s technology, which includes route optimization, real-time tracking, and AI-powered supply chain insights, Ingka Group plans to make its delivery process faster, more efficient, and more reliable.

Despite the acquisition, Locus will continue to operate independently and serve clients beyond Ingka Group.

Why Ingka Group Made the Move

For Ingka Group, the acquisition is about gaining greater control over its fulfillment and delivery operations.

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

The company has been steadily investing in digital transformation to streamline its supply chain and customer experience. This includes past acquisitions such as Made4net in 2023 to strengthen warehouse management systems and TaskRabbit in 2017 to enhance last-mile assembly services.

Online sales have become an important part of Ikea’s business, accounting for 28% of total retail sales in fiscal year 2024, up from 17% in 2019.

Locus’s Vision for Growth

Founded in 2015, Locus started out of a small studio apartment and has since evolved into a global logistics technology leader. The company raised about $2.75 million in Series A funding in 2016, led by Exfinity Ventures and Growx Ventures.

According to Nishith Rastogi, founder and CEO of Locus, joining Ingka Group provides both stability and opportunity. “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. “To usher in this new phase, we will expand significantly across product, engineering, and revenue teams, to build a legacy of innovation and impact spanning decades, not years.”

The Bigger Picture: AI in Retail

The acquisition reflects a growing trend across the retail industry as companies increasingly turn to AI-driven logistics to optimize operations. Retail giants like Walmart are using AI to scale supply chains, Amazon is applying AI to help sellers manage shipments, and Lululemon recently created a new AI executive role to accelerate product innovation.

For Ingka Group, integrating Locus’s technology signals a clear focus: using AI not just as a tool for efficiency, but as a foundation for smarter, customer-centric retail logistics in the years ahead.