Vinted, Europe’s leading second-hand fashion marketplace, has announced the successful completion of a €340 million secondary share sale, boosting its valuation to €5 billion. The transaction, spearheaded by TPG (NASDAQ: TPG), a prominent global alternative asset manager, reinforces Vinted’s growth trajectory in the expanding second-hand market.
This latest funding round diversifies Vinted’s investor base and acknowledges the contributions of its employees and early investors to the platform’s success. TPG’s Tech Adjacencies (TTAD) strategy, which provides flexible capital solutions to technology firms, led the investment. Notable participants in the funding included major investment funds such as Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. All existing institutional investors continue to support Vinted.
Vinted’s last funding round in 2021 valued the company at €3.5 billion. Since then, the platform has significantly increased its gross merchandise value (GMV) by over 3.5 times and has achieved full profitability. In 2023, Vinted reported a revenue growth of 61% and maintained a double-digit EBITDA margin. As the European leader in the second-hand fashion space, Vinted encourages sustainable consumption practices, with 37% of its members indicating that second-hand clothing comprises at least half of their wardrobe.
The surge in Vinted’s growth is attributed to its commitment to offering exceptional value to members at minimal costs. Over the past year, the marketplace has expanded its presence in existing markets while launching operations in new regions, including Finland, Greece, and Croatia. A new verification service for trading designer and luxury items has also been introduced, currently active in ten countries.
Recently, Vinted has commenced the roll-out of a new electronics category and expanded its shipping operations in the Netherlands, Belgium, and France. Additionally, Vinted’s payments division has obtained an EMI license and is developing solutions to enhance transaction experiences for its members.
Thomas Plantenga, CEO of Vinted, expressed enthusiasm about welcoming new investors who can support the company’s next growth phase while leveraging the expertise of long-standing backers. “We aim to make second-hand the first choice worldwide,” Plantenga stated. “We are proud of the product we have created which our members love and that contributes positively to communities and the environment.”
Andy Doyle, Partner at TPG, noted the growing trend of consumers opting for second-hand fashion as sustainability becomes increasingly important. He praised Vinted’s customer-centric approach, exceptional product experience, and efficient logistics, stating that these factors have broadened access to the second-hand market. TPG is excited to collaborate with Plantenga and his team as Vinted continues to expand its influence in the tech sector.
Morgan Stanley & Co. International plc served as the financial advisor and placement agent for the transaction, while Taylor Wessing and Cooley provided legal counsel to Vinted.