Allegro’s geographical diversification continues.
Poland’s online marketplace Allegro has upped the tempo in the first quarter with higher active buyer spending in its home market and robust gross merchandise value (GMV) growth elsewhere in central and eastern Europe.
Across its footprint, active buyers rose by 5.4% to reach 21 million in Q1, while their average spending was 3.7% higher year-over-year. Despite the positive results, revealed on Wednesday, the Warsaw-listed stock was down by 2.4%, although year-to-date it is up 21.8%.
Crucially, six million of the 21 million users are now based outside Poland which gives Allegro not just greater geographical reach, but more credibility in the world of European e-commerce. Amazon is the dominant player on the continent, but Chinese players like fast-fashion led Shein and cut-price Temu have risen up the ranks very quickly.
Marcin Kuśmierz, Allegro’s new CEO who has more than 25-years-experience in tech, e-commerce, fintech and AI, said: “Not only is the number of active buyers rising in Poland and internationally, but they continue to spend more with us on average, which proves that Allegro knows how to draw high-quality traffic and how to satisfy consumers. We have so many ideas for further growth.” However, he did not divulge what they were.
Allegro builds up the Czech Republic, Slovakia and Hungary
Allegro claims to be the largest marketplace founded in Europe, and Kuśmierz said the business makes up 1% of Poland’s GDP. First quarter revenue for the company in Poland hit Polish Zloty 2.39 billion ($640 million) up 15%. The international segment that comprises fledgling marketplaces in the Czech Republic, Slovakia and Hungary under the Allegro banner are still getting into their stride and posted Polish Zloty 51 million ($13.6 million), up 80%.
Marcin Kuśmierz: “We want to deepen our commitment to our clients and remain the marketplace of … More
These three marketplaces saw the number of active buyers rise to 3.7 million in Q1, with their purchase frequency also rising and GMV reaching $128 million. Allegro says that having these cross-border European Union (EU) markets under its wing is appealing to merchants who want to access new markets.
The number of Allegro.pl sellers with exportable offers rose by nearly 30% in Q1, while the pool of local merchants from the three new countries grew by 56% year-over-year, and 10% versus the end of 2024. Allegro wants to highlight its product selection and quick delivery from European merchants to distinguish itself from Asian competitors.
Allegro takes a selective view of Asian merchants
The company stated: “That’s why offers with long shipping times—mostly from East Asia—have been removed from Allegro’s international marketplaces in recent months. This has improved consumer-trust metrics and conversion rates with very little GMV impact.” Allegro said it still welcomes Asian merchants, but preferably those with inventory located in Europe.
Within its international arm, the company also has the loss-making Mall Group segment (Mall.cz and Mall.sk), acquired in 2021, which contributed $58.8 million to turnover, down 45%. This is due to the decommissioning of the legacy platforms and full migration to shop-in-shops on the main Allegro platform which was completed on March 31. Allegro expects Mall to make a cash-positive contribution to group results in 2026.
Looking ahead, Kuśmierz said: “My priorities are to drive greater operational efficiency, develop new products and services, and forge powerful strategic partnerships. Above all, we want to deepen our commitment to Allegro’s clients and remain the marketplace of choice for a growing pool of consumers and merchants from across the region.”
