IKEA Plans to Invest $2.2 Bn in India after Starting Online Deliveries in Tamil Nadu

Swedish home furnishing company, IKEA, plans to more than double its investment in India to over $2.20 billion over the next five years, signalling strong confidence in the country’s long-term growth potential.

Although India is still a relatively small market for the Swedish home furnishings retailer, IKEA India CEO Patrik Antoni told Reuters that the company expects it to become one of its top global markets. IKEA’s India sales rose 6% to ₹18.61 billion in the year ended August 2025, and the company aims to quadruple this by sharply expanding its store network to 30 outlets from the current six.

This comes as IKEA started online deliveries across Tamil Nadu, expanding its reach in the state ahead of any physical store launch. Customers in Chennai, Coimbatore, Madurai and Salem can now order IKEA products through the company’s website, mobile app and phone-assisted shopping service.

The company is offering access to more than 6,400 home furnishing products, with deliveries promised within three to seven days, while orders in the state will be fulfilled through IKEA’s Bengaluru distribution centre.

Tamil Nadu has been a key market for IKEA’s online traffic, with over 25,000 customers already enrolled in its 'Family Loyalty Programme'. IKEA said online sales account for over 30% of its India revenue, making e-commerce central to its expansion strategy in regions without physical stores.

Antoni said the online launch would help the company understand customer preferences in Chennai and other cities, which would guide future decisions on store formats and locations in the state.

"Every market and every home teach us something new, and this launch is another important step in that journey. Learnings here will influence the future shopping formats and help identify the right locations," Antoni added.

The Tamil Nadu government welcomed IKEA’s entry into e-commerce operations in the state. Dr TRB Rajaa, Minister for Industries, Investment Promotions and Commerce, said the move is expected to support local supply chains and last-mile logistics, aligning with the state’s focus on technology-led growth.

All last-mile deliveries in Tamil Nadu will be carried out using electric vehicles, in line with IKEA’s sustainability commitments. Customers will also have access to home planning services, product assembly support, long-term warranties and a 365-day return policy.

IKEA currently operates large-format stores in Hyderabad, Navi Mumbai and Bengaluru, along with city stores in Mumbai and Delhi, and delivers to several states across India. The addition of Tamil Nadu marks the company’s continued push to expand its online-first presence in key markets.