The Copenhagen based logistics startup Mover Systems reports it has secured an investment “in the millions” by southern Sweden based IKEA, which takes a 25% equity stake in the company. Movers service will become the backbone of IKEA´s logistics all the way from inventory to consumer. Its solution is to be rolled out in a large number of European countries over the next 12 months.
The investment is from, Ingka Investments, the investment arm of Ingka Group, owner and operator of 381 IKEA stores in 30 countries.
“Mover has the potential to significantly improve the way businesses manage their last-mile deliveries, making it easier for customers to shop online. The investment provides Mover the possibility to implement its solution in other countries where IKEA Retail is active,” says Krister Mattsson, Managing Director of Ingka Investments.
Since May, IKEA Retail Denmark is operating a customised Mover last-mile solution. Together, the two companies built a solution that fits the needs of IKEA customers and can adapt to the fast-changing retail landscape.
”Already we see that almost overnight the solution has improved our transparency, delivery precision and is allowing us to reduce delivery associated costs. This is a significant step forward that will enable IKEA Retail to provide enhanced last mile delivery services to our customers, continue to improve on our customer promise, while also reducing our environmental footprint”, says Marcus Baumgartner, Customer Fulfilment Manager of Ingka Group.
The investment is the latest in a series of investments made by Ingka Group that will strengthen its core retail business by investing in innovative companies in areas such as digitalisation and sustainability. This is their first investment in a Danish startup.
“We are very proud of this investment and the fact that IKEA sees the quality and perspectives of our business and the team that has made it happen. By providing companies with a customised logistics solution, we bring transparency and control over how goods are transported and delivered, whether they are using in-house fleets, third party providers, or a combination of both.”, says Martin C. Hansen, CEO of Mover Systems.
Mover operates two business models in tandem
Mover, founded in 2016, had a turnover of € 12 million (DKK 94 million) last year. The startup is 40 employees in Copenhagen, and is a profitable business.
It’s core business is in two segments:
Transport & Logistics, where Mover is the outsourced provider of courier transportation and logistics for companies. Mover is responsible for orchestrating and managing their last-mile delivery administration via their platform.
Software & Consulting, where Mover’s Transport Management System can be integrated in a company’s own digital environment, enabling the customer to tailor, optimize and manage their entire last-mile operations in-house via Mover’s technology platform (or a white-labelled version).
“For IKEA, we make a big difference because they now have transparency and control over deliveries all the way from inventory over terminals to the consumer’s living room. IKEA will both be able to control the customer experiences and at the same time see how many minutes it takes to get a two-person sofa to the curb in Ringsted versus up on the 4th floor in Østerbro. And how they can most efficiently transport the customer’s used sofa with return ”, says Martin C. Hansen about the deal