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Dive brief:
- Part of a larger digital transformation strategy, the Ingka Group’s investment arm, the US -based artificial intelligence technology company for an unknown amount, according to a company announcement on Tuesday.
- The largest IKEA retailer intends to use the Locus platform-which includes advanced route optimization, real-time tracking, and more-to improve its delivery offers. Until the deal, IKEA relied on several third -party providers.
- Locus will remain operational after independent transaction and will continue to grow its services to customers beyond the Ingka Group.
Dive insight:
For the Ingka group, bringing this logistics specialty to the company is everything about control.
“This acquisition fully complies with our commitment to improve customer trip anywhere,” said IKEA retail head at IKKA Tolga Oncü Group. “By bringing Locus technology to the home, we control an important element in our realization chain and allow us to deliver more quickly and flexible to many people.”
The move is built on other digital investments from the Ingka Group, which includes 2023 Made4net to help managing warehouse and buying 2017 assembly at Taskrabbit home. Ingka said in a statement Tuesday that online sales make up 28 % of the total IKEA retail in fiscal year 2024, indicating an 11 % increase in fiscal year 2019.
For Locus, it was decided to join the Ingka group on independence and access to resources.
“This partnership maintains our independence and guarantees us permanently, while opening the scale and resources to serve our global customers with unparalleled research and development,” said Nishit Restop. “To use in this new stage, we will significantly expand the product, engineering and income teams to create the heritage of innovation and influence over decades, not years.”
The company with the power of AI on its website says it was founded in a studio apartment in 2015 and was registered under another name. In 2016, Locus collected about $ 2.75 million in a Serie A budget led by Exfinity Ventures and Growx Ventures.
The acquisition of Locus Group Ingka shows increasing interest in using artificial intelligence in the retail industry. Walmart has sought to scale its supply chain, Amazon has recently announced that it is using AI to help sellers in cargo management, and Lululemon has created a new AI executive role to faster its product innovation.
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