Vinted, a second-hand fashion marketplace based in Vilnius, has secured €340 million in a secondary share sale, primarily led by TPG, which values the company at €5 billion. This funding round also includes participation from investors like Hedosophia and Baillie Gifford. The capital will be directed towards further growth initiatives, such as expanding into new markets, enhancing its logistics capabilities, and launching a new electronics category. With a reported 61% revenue growth in 2023 and achieving profitability, Vinted is positioned to strengthen its presence in the global second-hand market.
Vinted is a prominent online marketplace in Europe specializing in second-hand fashion, allowing users to buy, sell, and trade pre-owned clothing and accessories. The platform facilitates individual transactions, enabling users to list items from their wardrobes and browse a diverse selection of fashion pieces offered by others. With a focus on sustainability, Vinted encourages users to adopt more environmentally friendly consumption habits. The marketplace has expanded its reach across various European countries, introducing features such as a verification service for luxury items and a new category for electronics. This evolution reflects Vinted’s aim to provide a practical and accessible solution for those looking to engage in second-hand shopping.
The transaction, led by TPG (NASDAQ: TPG), a leading global alternative asset manager, validates Vinted’s opportunity and progress in developing and growing the second-hand market globally. It also diversifies the company’s investor base with new expertise and rewards its employees and early investors for their contributions to Vinted’s success.
TPG Tech Adjacencies (TTAD), TPG’s strategy dedicated to providing flexible capital solutions to the technology industry, is funding the investment. Other major investment funds including Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures also participated. All of Vinted’s existing institutional investors remain invested in the company.
In 2021, at the time of Vinted’s last fundraising round, the company had a pre-money valuation of €3.5 billion. Since then, Vinted has increased its gross merchandise value (GMV) by more than 3.5x and has become fully profitable. In 2023, the company delivered revenue growth of 61% and had a double-digit EBITDA margin.* Vinted has become the European leader in its field, encouraging people to adopt new consumption habits and today, more than a third (37%) of Vinted members say that second-hand makes up at least half of their wardrobe.**
This growth has been enabled by Vinted’s rigorous focus on ensuring its members get excellent value at the lowest possible cost. In the last year alone, Vinted 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.
In recent weeks, Vinted has begun the roll-out of a new category for electronics. And in parallel, the company has successfully expanded its shipping business in the Netherlands, Belgium, and France. Vinted’s payments business has acquired an EMI license and is working on solutions to improve how members transact on Vinted.
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.”
Morgan Stanley & Co. International plc served as financial advisor and placement agent for the transaction. Taylor Wessing and Cooley provided legal advice to Vinted.
*April 29, 2024 (Vinted delivers strong year of growth and reaches profitability, while investing for the future )
** According to Vinted’s Impact Report, released in June 2024.
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