Overview

Partnership
January 2017 – present

Employees
1,380 end 2016 – 2,300 in 2020

Sector
Technology / Consumer

Location
Poland

Website
allegro.pl

bn
Implied market cap
>%
Revenue and profit growth
#
Largest IPO on the Warsaw Stock Exchange in October 2020

Polish online marketplace

 

Polish online marketplace Allegro has the most recognised and successful internet platform in Poland with iconic brand recognition and unrivalled user engagement metrics. The $3.25bn/€2.75bn acquisition in January 2017 by MidEuropa, Cinven and Permira saw the business transformed through digital upgrades, operational improvements, and a highly motivated team to grow revenue and profits by over 100% and headcount by two-thirds in under four years. The tremendous growth saw employee numbers grow from 1,380 at the end of 2016 to nearly 2,300 at 30 June 2020, more than 40% of senior management positions are held by women, and Allegro is a proud member of the UN Global Compact.

In October 2020, Allegro became one of the largest Internet and e-commerce IPOs in Europe and the largest initial public offering on the Warsaw Stock Exchange when it listed with an implied market capitalisation of PLN 44bn (€9.8bn).

 

Partnership highlights:

  • Launch of Allegro Smart! in 2018 as a free delivery subscription service
  • Optimisation of the take-rate mix as fees shifted from listing towards success (to incentivise B2C and C2C sellers), and offering a broader assortment of goods to enhance the value proposition
  • Merchants supported through investments in technology such as automated tools and analytics to provide valuable data, which in turn helped them to provide a better and more tailored offering to end-customers
  • Development of a platform ecosystem which included logistics, payments, consumer and merchant finance, loyalty programmes, customer support and buyer protection programmes
  • Strategic acquisitions of online ticketing platform eBilet in 2019; fintech start-up FinAi in 2020, enabling the launch of Allegro Pay; Opennet in 2021, allowing Allegro to in-house its last-mile software; X-press Couriers in 2021, a same-day delivery company, to complement its fulfilment services
  • Investment into technology to increase traffic, conversion, transaction frequency and basket size by introducing a single product view
  • Number of active buyers increased by 3.7m to 13.0m between the end of 2017 and end of 2020 and GMV (gross merchandise value) grew by 99% between end 2016 and H1 2020
  • Net revenue grew by 102% and adjusted EBITDA by 113% on a last-twelve-months basis between end 2016 and H1 2020 

 

ESG initiatives highlights:

  • Joined the Climate Leadership program powered by UN Environment
  • Promoting “clean air” – as part of the Anti-Smog Coalition, Allegro removed all offers with coal stoves that fail to meet the legal requirements from its platform
  • Enablement of sustainable packaging and deliveries which includes free courses on zero-waste packaging

 

Value creation:

  • Organic Growth
  • Operational Excellence
  • Acquisitive Growth

 

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