Vinted, a prominent online marketplace for second-hand fashion, secured €340 million through a secondary share sale, elevating its valuation to €5 billion. Based in Vilnius, Vinted has grown significantly since its inception in 2008. The company has established itself as a market leader in Europe, driven by a mission to make second-hand the go-to choice worldwide. This funding, which introduces new investors, comes as Vinted seeks to expand its influence in the sustainable fashion industry and reward its dedicated workforce.
Reports on Vinted’s previous funding rounds highlight the company’s consistent growth trajectory. In 2021, Vinted’s valuation was set at €3.5 billion during its last fundraising round. Since then, Vinted has not only increased its valuation but also more than tripled its gross merchandise value. These developments underscore Vinted’s expansion and its ability to adapt to market dynamics, reinforcing its commitment to sustainable practices in the fashion industry.
Who are the new investors?
Leading the investment round is TPG Tech Adjacencies, a firm known for providing flexible capital in the tech sector. Other notable participants include Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. These investors, alongside Vinted’s existing backers, signal strong confidence in the company’s future potential.
“We’re delighted to welcome new investors with the experience to support us through our next phase of growth,” stated Thomas Plantenga, CEO of Vinted.
What are Vinted’s expansion plans?
Vinted is focused on enhancing its presence in Europe and North America, aiming to make second-hand items a preferred choice. The platform supports trading in a variety of goods, from clothes to pet care products, and emphasizes reducing the shipping footprint with its Vinted Go brand. The brand collaborates with over 40 carriers, ensuring efficient parcel delivery through an extensive pickup network. This move aligns with Vinted’s goal to foster sustainable consumption practices.
The company has more than doubled its revenue in recent years, achieving a double-digit EBITDA margin. This financial growth is complemented by strategic market expansions, such as entering Finland, Greece, and Croatia. Vinted has also introduced a verification service for designer items, now available in ten countries, and expanded its electronics category and shipping services. These efforts reflect Vinted’s commitment to meeting diverse consumer needs while enhancing operational efficiency.
Vinted’s efforts to enhance its payment services also stand out. The company obtained an EMI license to streamline transaction processes for its users. This development is part of a broader strategy to improve the customer experience and ensure seamless interactions on the platform.
Andy Doyle, Partner at TPG, remarked, “We’ve seen that consumers are increasingly choosing second-hand as a core part of their wardrobe.”
Vinted’s ability to maintain profitability while scaling operations points to its effective business model. This latest funding round provides the company with additional resources to pursue its goals. As the second-hand fashion market continues to grow, Vinted’s approach highlights the potential in sustainable practices. The company’s focus on innovation and expansion positions it well for future success in the competitive fashion landscape.
