Ingvar Kamprad, the enigmatic founder of Swedish furniture giant IKEA, died aged 91 on Sunday, the company said.

"The founder of IKEA and Ikano, and one of the greatest entrepreneurs of the 20th century, Ingvar Kamprad, has peacefully passed away, at his home in Smaland, Sweden, on the 27th of January," the company said in a press release.

"Ingvar will be very missed and warmly remembered by his family and IKEA colleagues around the world," the statement added.

Kamprad founded IKEA in 1943 when he was just 17, but didn't hit gold until 1956, when the company pioneered flat-pack furniture.

He got the idea as he watched an employee taking the legs off a table to fit it into a customer's car and realized that saving space meant saving money.

The retailer is now heading for 50 billion euros ($62 billion) in annual revenues.

Born on March 30, 1926, in southern Sweden, Kamprad started off selling matches to neighbours at the age of five and soon diversified his inventory to include seeds, Christmas tree decorations, pencils and ball-point pens.

"Ingvar Kamprad was a great entrepreneur of the typical southern Swedish kind - hardworking and stubborn, with a lot of warmth and a playful twinkle in his eye," the company said.

"He worked until the very end of his life, staying true to his own motto that most things remain to be done."