Vinted, the renowned Lithuanian second-hand fashion platform, has recently achieved a remarkable €5 billion valuation following a significant secondary share sale. This financial milestone reflects the growing prominence and expansion of the company within the European market.
Milestone Achievement and Strategic Investments
Earlier in 2021, Vinted successfully secured an all-equity round amounting to €250 million, elevating its pre-money valuation to €3.5 billion. Since then, Vinted has expanded into new markets such as Finland, Greece, and Croatia, alongside enhancing its platform with a designer and luxury fashion verification service, now active in ten countries.
In addition to geographic expansion, Vinted ventured into electronics, broadened its shipping services across the Netherlands, Belgium, and France, and obtained an EMI license to enhance transaction solutions. These strategic initiatives underscore Vinted’s commitment to innovation and growth within the second-hand marketplace.
Impressive Growth Trajectory
Founded in 2008 by Milda Mitkute and Justas Janauskas, Vinted began as a simple peer-to-peer site for trading second-hand fashion. The company has since flourished, experiencing a substantial growth rate in gross merchandise value (GMV), exceeding 3.5 times its initial figures.
In 2023 alone, Vinted reported a 61% revenue increase, alongside a robust double-digit EBITDA margin. Notably, 37% of Vinted’s user base reveals that they now rely on second-hand clothing for at least half of their wardrobe, demonstrating a shift in consumer behaviour towards sustainable fashion.
Expanding User Base Across the Globe
Although Vinted originated in Lithuania, it now claims an expansive global reach, with 105 million registered users as of 2023. These users are spread across Europe and North America, cementing Vinted’s status as a leader in online second-hand fashion.
Vinted’s recent movements to broaden its presence in North America highlight its ambition to tap into the American market. The increasing interest in second-hand fashion in the U.S. presents a fertile ground for Vinted’s continued expansion and market penetration.
The company’s stance as a dominant force in second-hand trading is evidenced by its significant global user base, making it one of the largest such platforms worldwide.
Economic Model Favouring Sellers
A distinct feature of Vinted’s platform is its seller-friendly model, which allows sellers to retain 100% of their profits. Unlike many competitors, Vinted imposes no listing or selling fees on its platform, which is highly attractive to sellers looking to maximise their earnings.
While sellers enjoy this favourable economic model, buyers incur a Buyer Protection Fee at the checkout. This fee incorporates a fixed amount and a percentage of the item price, providing added security and ensuring a reliable transaction process for both parties.
Commitment to Sustainability
Vinted is pivotal in promoting a sustainable fashion economy by encouraging the resale and reuse of garments, significantly reducing the environmental impact of fast fashion. This commitment positions Vinted as a leading advocate for sustainable consumer practices within the fashion industry.
By fostering a circular economy, Vinted not only champions environmental concerns but also influences broader consumer habits, encouraging a shift towards eco-friendly fashion choices.
Vinted’s Journey to Unicorn Status
Vinted’s journey to becoming Lithuania’s first tech unicorn in 2019 is marked by strategic investments and funding rounds, which have significantly bolstered its market position. Notably, in 2021, Vinted’s valuation reached €3.5 billion following a successful funding endeavour.
CEO Thomas Plantenga emphasises the shared vision with new and existing investors to make second-hand fashion a first choice globally. This vision continues to drive Vinted’s operational strategies and growth objectives, aligning with the interests of both investors and consumers.
TPG Partner Andy Doyle acknowledges Vinted’s strong customer focus and strategic market positioning, recognising the platform’s efforts to make second-hand fashion mainstream and accessible.
Looking Ahead
As Vinted embarks on the next chapter of its journey, the company remains committed to innovation, sustainability, and expansion. These core principles continue to guide its strategic direction and market developments.
Vinted’s landmark €5 billion valuation is emblematic of its robust growth and continued influence in the second-hand fashion industry. With a strong commitment to sustainability and an ever-expanding user base, Vinted is poised for further success and global impact.