Vinted has closed a new financing round that boosts its valuation. The second-hand marketplace has closed the secondary share sale for €340 million at a valuation of €5 billion. In 2021, during Vinted's last funding round, the company had a pre-money valuation of €3.5 billion.
Thomas Plantenga, CEO of Vinted, said: "We are delighted to welcome new investors with the expertise to support us in our next phase of growth while continuing to benefit from the experience of our long-term backers. TPG and our other new investors share our vision: to make pre-owned vehicles the first choice worldwide. We are also delighted that this share sale rewards our employees for their dedication to making Vinted successful."
The transaction was led by U.S.-based TPG Group, a global alternative asset manager, and other investment funds, including Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. The transaction validates Vinted's opportunity and progress in developing and growing the secondhand 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.
Since the last funding round of the Lithuanian marketplace closed, it has increased its gross merchandise value (GMV) by more than 3.5 times and reached full profitability. In 2023, the company recorded 61% revenue growth and had a double-digit EBITDA margin. Vinted has become the European leader in its field, encouraging people to adopt new consumer habits. Today, more than a third (37%) of Vinted members say that second-hand clothes make up at least half of their closet.
This growth has been made possible by Vinted's rigorous focus on ensuring its members get excellent value at the lowest possible cost. In the last year alone, Vinted's marketplace expanded into existing markets and launched into new markets, including Finland, Greece, and Croatia. The company also launched a new verification service to help members exchange luxury and designer fashion items more securely. This feature is now available in 10 countries.
In recent weeks, Vinted has begun implementing a new category for electronic products. The company has 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.
Andy Doyle, partner at TPG, said, "We have seen consumers increasingly choose second-hand items as a key part of their wardrobe, as sustainability and flexibility have become priorities for many people. Vinted's customer focus, leading product expertise, and sophisticated logistical approach have made this market accessible to a 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 technology companies."
