Swedish furniture retailer Ikea has invested Rs 600 crore in its Indian business, according to Registrar of Companies (RoC) data accessed by business intelligence platform Tofler.
The fund would support Ikea’s expansion plans in India. Ikea India Ltd had issued 60 crore shares of the company having a price value of Rs 10 to the Netherland-based Ingka Pro Holding BV and Ingka Holding Overseas BV. The majority of the equity shares, allotted on September 8, 2022, were issued to Ingka Holding Overseas BV. When asked about the development, an Ikea spokesperson said the company is committed towards India and the country has been identified as a future growth market for the Ingka group.
“The fund infusion received is part of the Rs 10,500 crore announced initially. This new infusion will support our omni-channel 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,” the spokesperson said. The investments have come at a time when Ikea is expanding its presence in the country by adding more stores.
While Ingka Group has also announced that it would invest Rs 7,500 crore to develop in the NCR two Ingka Centres, large retail destinations that would house other brands and retailers apart from Ikea. Ikea, which received government approval in 2013 for its Rs 10,500-crore investment for opening stores in India, had envisaged setting up 10 furnishing and home-ware stores as well as allied infrastructure in over 10 years in the country. So far it has set up three mega format stores in Hyderabad, Navi Mumbai and Bengaluru, and two city centres in Mumbai.