Vinted, a Lithuanian second-hand fashion marketplace, has closed a secondary share sale of €340 million at a valuation of €5 billion. The transaction was led by TPG, a global alternative asset manager, alongside major investment funds including Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. All of Vinted’s existing institutional investors – Accel, EQT, Insight Partners, and Lightspeed Venture Partners invested in the company.
Achievements and announcements
Back in 2021, Vinted closed an all-equity round of €250 million and reached a pre-money valuation of €3.5 billion. Following this, last year, the marketplace expanded in existing markets and launched into new markets including Finland, Greece, and Croatia. The company also launched a new verification service to help members trade designer and luxury fashion items more safely. This feature is now live in 10 countries.
Recently, it rolled out a new category for electronics. It also expanded its shipping business in the Netherlands, Belgium, and France. Its payments business acquired an EMI license and is working on solutions to improve how members transact on Vinted.
Today, when Vinted increased its valuation, TFN has come up with some facts about the company that made it a leader in Europe.
Growth since inception
Vinted was founded in 2008 in Lithuania by Milda Mitkute and Justas Janauskas as a peer-to-peer platform for second-hand fashion. It has grown significantly since its inception reaching a gross merchandise value (GMV) of more than 3.5x. In 2023, the company delivered revenue growth of 61% and had a double-digit EBITDA margin. As per the company, more than a third (37%) of Vinted members say that second-hand makes up at least half of their wardrobe.
Global user base
For many years, there has been a small base of Vinted users in the USA, but the company is now expanding. The company claims to have 105 million registered users in 2023 Vinted across Europe and North America, making it one of the largest online platforms for buying and selling second-hand items.
Sellers make 100% profit
Vinted does not charge sellers any fees for listing or selling items, allowing them to keep 100% of their profits. Once a sale is complete, the seller receives the full selling price in their Vinted Balance. However, buyers are charged a Buyer Protection Fee for every purchase made on Vinted. This fee is automatically added to the total payment at checkout. The fee is made up of a fixed amount of $0.70 plus 5% of the item price.
Focus on sustainability
The platform promotes a sustainable, circular economy by encouraging the resale and reuse of clothes, which helps reduce the impact of fast fashion on the environment. Vinted has become the European leader in its field, encouraging people to adopt new consumption habits and today.
First Lithuanian tech unicorn in 2019
Vinted has raised significant investment, including a $250 million funding round in 2021, which brought its valuation to €3.5 billion, establishing it as a major player in the second-hand market. Interestingly, it became Lithuania’s first tech unicorn in 2019, raising €128 million in funding.
Thomas Plantenga, CEO of Vinted, said: “We’re delighted to welcome new investors with the experience to support us through our next phase of growth while continuing to benefit from the expertise of our long-term backers. TPG and our other new investors share our vision: to make second-hand the first choice, worldwide. We’re also delighted that this share sale rewards our employees for their dedication in making Vinted a success. We are incredibly proud to have built a product that our members love to use, and that has created a market for second-hand fashion. Vinted shows it’s possible to have a successful, profitable business that positively impacts people, communities, and the environment.”
Andy Doyle, Partner at TPG, said: “We’ve seen that consumers are increasingly choosing second-hand as a core part of their wardrobe, as sustainability and flexibility become top of mind for many people. Vinted’s customer focus, leading product experience, and sophisticated approach to logistics have made this market accessible to an even broader population. We are excited to partner with Thomas and his team of world-class operators and to count Vinted among our growing portfolio of leading European tech businesses.”
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