Swedish furniture retailer Ikea has invested Rs 600 crore in its Indian business, according to Registrar of Companies (RoC) data seen 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 with a price value of Rs 10 to Dutch companies Ingka Pro Holding BV and Ingka Holding Overseas BV.
The majority of shares, granted on September 8, 2022, were issued to Ingka Holding Overseas BV.
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Asked about the development, an Ikea spokesperson said the company was committed to India and the country had been identified as a future growth market for the Ingka Group.
“The infusion of funds received is part of the Rs 10,500 crore initially announced. This new infusion will support our omnichannel expansion plans in India to enable us to reach many more people in India for their home living needs. with our affordable price and durable products,” the spokesperson said.
The investments came at a time when Ikea is expanding its presence in the country by adding more stores.
While Ingka Group has also announced that it will invest Rs 7,500 crore to develop two Ingka Centers in the NCR, major retail destinations which would house other brands and retailers apart from Ikea.
Ikea, which received government approval in 2013 for its investment of Rs 10,500 crore to open stores in India, had planned to set up 10 furniture and homeware stores along with allied infrastructure in addition 10 years in the country.
So far, it has set up three mega format stores in Hyderabad, Navi Mumbai and Bengaluru, and two city centers in Mumbai.