Allegro, the leading Polish b-to-c marketplace, has tied up with invoice factoring provider PragmaGo to offer instant payment services for sellers. The new service will be launched after integrating the Allegro system with the Navi PragmaGo app, according to a report on financial news site Cashless.pl.

Factoring is a financial service that lets the seller of a product receive payment immediately after issuing the invoice. The financing is handled by a factoring company for a fee. Depending on the service, the factoring company may also be responsible for possible debt recovery.

The signed agreement lets Allegro offer factoring services with a turnover of at least PLN 500 million ($134 million U.S.) by the end of 2021, and PLN1.2 billion ($322 million) by the end of 2022.

Allegro has been developing its financial services for a long time. One of them is its deferred payments product, which lets users order products on the platform and pay for them after a certain period. The seller, however, receives the payment immediately. The partnership with PragmaGo may be a way to help finance this type of service.

Allegro is owned by private equity firms Cinven, Permira and Mid Europe, which bought the site from Naspers in October 2016. The marketplace is planning an initial public offering (IPO) that could value the business at around €10 billion ($11.2 billion U.S.).

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