IKEA Steps Up India Expansion with Over ₹20,000 Crore Investment Planned

IKEA has announced a major expansion of its India strategy, signalling stronger long-term commitment through higher investment, wider market reach, and deeper local integration over the next 5 years, as per Reuters. 

Investment Expansion and Growth Targets 

Sweden’s IKEA plans to more than double its investment in India to over ₹20,000 crore in the next 5 years. The additional capital will be used to open more stores, strengthen operations, and significantly scale the business.  

The retailer, which entered India in 2018 with its first store in Hyderabad, reported a 6% rise in sales to ₹18.61 billion for the year ended August 2025. IKEA now aims to quadruple its India revenue and expand its physical store network to 30 outlets from the current six.  

Digital-First Market Expansion and Manufacturing Strategy 

IKEA is adopting a digital-led approach to enter new Indian cities. It will start accepting online orders in cities where it does not yet have physical stores, including Chennai and Coimbatore in Tamil Nadu.  

This marks the first time globally that IKEA will prioritise online operations before opening brick-and-mortar stores. The strategy reflects changing consumer behaviour, especially among younger shoppers who increasingly prefer online purchases to avoid traffic congestion.  

Currently, online sales contribute over 30% of IKEA’s India revenue, and the company plans to raise this share to 40%. 

Alongside retail expansion, IKEA will significantly increase local sourcing and production in India. The company plans to double its production for domestic sales and exports to €800 million, strengthening India’s role as a manufacturing and export hub.  

Read More: IKEA Strengthens South India Expansion with Online Delivery Rollout in Tamil Nadu! 

Conclusion  

IKEA’s expansion strategy highlights strong confidence in India’s long-term consumer market. By combining higher investment, digital-first entry into new cities, and deeper local sourcing, the company aims to scale sales rapidly while positioning India as both a key retail destination and a global manufacturing base. 

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