The Indian furniture market is competitive, with both domestic and international players. Swedish-based home furnishings retailer brand IKEA has announced plans to expand its footprint into the Indian market by increasing its total investment to more than approximately $2.2 billion over the next five years. More than doubling its previous expenditure in the country, according to Reuters.
IKEA entered the Indian retail market in August 2018 with its first store in Hyderabad. The company has expanded its presence with multiple outlets across major cities. Currently, it has approximately 6 stores in India.
With new investment, IKEA plans to grow its store network in India, potentially up to 30 outlets by 2030. Major targets include Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai.
For the fiscal year ending August 2025, IKEA India reported about ₹1,860.8 crore in revenue, a year-on-year increase of around 6 percent. The company has improved its EBITDA and is aiming to achieve profitability within the next two years.
CEO Patrik Antoni of IKEA India said the intensified investment will support the opening of additional stores and the enhancement of the company’s digital footprint. In comments to Reuters, Antoni emphasized India’s potential to evolve into “one of our top markets,” despite its current relatively modest scale within IKEA’s worldwide operations.
India’s rapidly growing online furniture segment intensifies competition for IKEA, especially in urban and younger consumer segments. Pepperfry is one of India’s largest online furniture and home décor marketplaces. IKEA will launch online services in new cities where it currently has no physical stores, including Chennai and Coimbatore.
The company also plans to double its production for both domestic sales and exports, around $930 million in output, with India positioned as a cost-effective sourcing and manufacturing hub.
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