Allegro BFM 82

ALLEGRO

A RISING NEW GIANT

ALLEGRO

2 | BUSINESS FOCUS MAGAZINE

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ALLEGRO

ALLEGRO, THE TOP POLISH ONLINE MARKETPLACE THAT HAS BECOME ONE OF THE LARGEST E-COMMERCE WEBSITES IN EUROPE IS AIMING TO PUSH FOR INCREASED INTERNATIONAL PRESENCE.

A RISING NEW GIANT PROJECT MANAGED BY: TREVOR GRETSINGER

Founded in 1999 in Poznań with just a handful of employees working from the basement of a computer wholesaler, Allegro has undergone a huge transformation over the last two decades - from an auction site for hobbyists, it has evolved into the most popular e-commerce platform in Poland, and is growing fast.

A

s the trend of switching from offline to online in Poland has accelerated, the company has been developing at an unprecedented pace: over 20 million users visit the site every month, which is equivalent to 80% of all Internet users in Poland. This makes Allegro Poland’s favourite shopping place, where customers can find a virtually unlimited number of products at the most attractive prices, within all key categories including Automotive, Fashion, Home & Garden, Electronics, Books and Collectibles, Kids, and Health & Beauty.

During the first half of 2020 the number of companies selling on the platform - including both SMEs and large retailers - grew

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by 14% to 117 thousand, while the number of offers climbed 21% to 164 million.

A PEOPLE BUSINESS

Allegro currently employs over 2,100 people, nearly half of whom are top-class experts in technology. In 2020 Allegro has already hired 284 specialists and plans to hire 330 more by the end of the year.

“Allegro is one of the few Polish companies offering career opportunities comparable or even better than the largest global firms,” said Francois Nuyts, CEO of Allegro. “We create all the tech and business solutions for our clients and merchants locally, which means that the projects our specialists develop will be soon used by millions of Poles.

The whole Allegro ecosystem contributes to the development of the Polish economy in terms of taxes and new jobs. The scale, the ambition and the unique culture make Allegro a great place to work and grow.”

The company has developed a number of innovative customerfriendly features including

‘Allegro Smart!’, a customer loyalty programme which offers free shipping. Currently, approximately 66 million offers can be delivered within 2 days, including 16 million offers with delivery inside a day. Allegro recently introduced a new delivery-time filter with the expected delivery date shown on the listing and offer page. Clients can also track their purchases at every stage of shipping and can easily check where their package is.

Allegro operates in one of few business areas to benefit during the coronavirus pandemic, as shoppers switch to buying online. Still, it is not only about increasing profits. The company has introduced several initiatives to help customers cope with the new situation.

When the coronavirus-related restrictions were introduced, Allegro offered the Allegro Smart! service totally free of charge for a period of three months, to give Poles the ability to shop safely without having to leave home. The company also undertook a range of other projects to support clients,

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sellers, the Polish health service and other groups adversely affected by the pandemic, with the total value of assistance provided exceeding PLN 375 million (EUR 84.5 million).

LISTED COMPANY

In October 2020 Allegro achieved a major milestone - the company completed a successful listing on the Warsaw Stock Exchange (WSE). The listing, which was executed via a placement to both institutional and retail investors, represents the largest initial public offering (IPO) on the WSE to date. The company’s shares leapt nearly 60% on their trading debut, giving the company a market value of about EUR 14.5bn.

Commenting on the stock exchange debut, François Nuyts said: “With our IPO process now complete, we can now look forward to starting Allegro’s next phase of growth as a listed company. Our amazing team is ready for the challenge, and is excited to press on with our ambitious plans to improve our platform and make it an even better place for consumers to shop and for merchants to do business.”

“The engagement we have seen from institutional and retail investors over recent weeks has been humbling. I’d like to thank each of them for their interaction with us and welcome those who have decided to become shareholders in Allegro. I am particularly delighted that today Allegro employees also become shareholders in the company, enabling them to share in the future success we go on to create together.”

EXPANDING THE REACH

Mr Nuyts affirmed that the first half of 2020 was a period of rapid development in the

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whole Allegro ecosystem despite the challenges related to the pandemic. The number of companies offering their products on Allegro has increased as has the number of purchases via the platform.

Customers have benefited from a broad selection of products, low prices and great convenience, especially thanks to the Allegro Smart! service.

“In just the first half of this year, thanks to free shipping, our clients saved a total of PLN 540 million (EUR 122 million), while their total savings since the launch of Smart! in 2018 have already passed PLN 1 billion (EUR 225 million)”, said Francois Nuyts.

He further affirmed that the company is constantly investing in solutions to enable its clients to use Allegro with greater ease and convenience as well as supporting merchants operating on the platform to help them develop their sales.

“The key areas for us are financial services and delivery, which are becoming faster and faster and more predictable.

This year we planned to earmark PLN 1 billion (EUR 225 million) to develop our platform and Allegro’s overall ecosystem.

Despite the coronavirus pandemic, this remains our goal.”

The company has a clearly defined strategy for growth.

Allegro continues to improve standards on the e-commerce market by fostering consumer rights and supporting the development of entrepreneurship. Allegro has so far concentrated on its domestic market, which has been one of the fastest-growing in the EU due to Poland’s rapidly expanding middle class. But in recent months the company has introduced features that would enable it to target international customers.

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“WITH OUR IPO PROCESS NOW COMPLETE, WE CAN NOW LOOK FORWARD TO STARTING ALLEGRO’S NEXT PHASE OF GROWTH AS A LISTED COMPANY.”

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