IKEA plans ₹200 billion investment in India, targets 30 stores and online growth

IKEA plans to more than double its investment in India to over ₹200 billion ($2.20 billion) over the next five years, as the Swedish furniture retailer looks to expand its store network, grow online sales and increase local sourcing, a senior executive told Reuters.

The company, which entered the Indian market in 2018 with its first store in Hyderabad, is preparing to roll out online shopping in four additional cities where it does not yet have physical stores. These include Chennai and Coimbatore in Tamil Nadu, marking a further push to tap digital demand in large urban markets.

“India is not a large IKEA country yet,” Patrik Antoni, CEO of IKEA India, told Reuters. “But the belief in India is very strong that it will be one of our top markets.”

Also read: EXCLUSIVE: VinFast backed GSM calls creative, media pitch ahead of India ride-hailing launch

IKEA’s sales in India rose 6% to ₹18.61 billion in the year ended August 2025. Antoni said the company aims to quadruple revenue over time by increasing its store count to 30 from the current six.

In a departure from its traditional expansion model, IKEA will begin online operations in new cities before opening physical stores, a first for the retailer globally. The strategy reflects changing consumer behaviour, particularly among younger shoppers who increasingly prefer online purchases to avoid traffic congestion, said Bhavana Jaiswal, country e-commerce integration manager.

Online sales currently contribute more than 30% of IKEA’s total India revenue, and the company aims to raise that share to 40%.

Also read: PhonePe gets Sebi nod for IPO; may raise Rs 12,000 crore via OFS: report

Alongside retail expansion, IKEA plans to double production from India for both domestic sales and exports to about €800 million ($930 million). The move aligns with a broader trend of global brands increasing manufacturing and sourcing from India to reduce costs and diversify supply chains.

Several multinational companies, ranging from footwear maker Asics to electric vehicle manufacturer VinFast Auto, have been stepping up sourcing in India to meet both export and domestic demand.

While U.S. President Donald Trump raised tariffs on certain Indian imports to as high as 50% last year, Antoni said the impact on IKEA’s Indian suppliers has been limited. He noted that most IKEA stores are located in Europe, and Indian suppliers ship largely to markets outside the United States.