Vinted, the leading European marketplace for second-hand fashion, has successfully completed a secondary share sale amounting to €340 million, resulting in a significant valuation of €5 billion. This round of funding, spearheaded by TPG, a prominent global alternative asset manager, reflects Vinted's rapid growth and its commitment to reshaping consumer habits toward sustainable fashion.

Investment Highlights

The transaction is designed to reward Vinted's employees and early investors while introducing a new wave of investors poised to guide the company in its next phase of expansion. TPG’s investment strategy, known as TPG Tech Adjacencies (TTAD), is specifically tailored to deliver flexible capital solutions to technology-focused enterprises. The share sale also saw participation from renowned investment funds including Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. Existing institutional investors in Vinted remain committed, signifying strong ongoing support for the company.

A Transformative Year for Vinted

In the past year, Vinted has achieved remarkable growth, evidenced by a staggering 61% increase in revenue and the attainment of profitability. This growth trajectory is a stark contrast to its previous valuation of €3.5 billion during its last fundraising round in 2021. Since then, Vinted has expanded its gross merchandise value (GMV) by over 3.5 times, illustrating its effective business model and market penetration.

Vinted's success is underscored by a notable shift in consumer behavior; currently, 37% of its members report that second-hand items constitute at least half of their wardrobe. This trend highlights the company’s role in promoting sustainable fashion and new consumption habits across Europe.

Strategic Initiatives and Expansion

Vinted’s growth has been propelled by a steadfast focus on delivering exceptional value to its members. Over the past year, the platform has expanded its presence in existing markets and made inroads into new territories, including Finland, Greece, and Croatia. The launch of a new verification service aims to enhance the trading experience for designer and luxury items, ensuring safer transactions for users across 10 countries.

Recently, Vinted has also ventured into the electronics market and broadened its shipping capabilities in the Netherlands, Belgium, and France. Furthermore, the company has secured an Electronic Money Institution (EMI) license for its payments business, positioning it to develop improved transaction solutions for its users.

Leadership Commentary

Thomas Plantenga, CEO of Vinted, expressed enthusiasm about welcoming new investors who bring a wealth of experience to support the company’s ongoing growth. He emphasized the importance of recognizing employee contributions to Vinted’s success and reiterated the company’s mission to make second-hand the primary choice for consumers worldwide. Plantenga stated, “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, a partner at TPG, echoed Plantenga’s sentiments, noting that consumers are increasingly embracing second-hand options as they prioritize sustainability and flexibility. He highlighted Vinted's customer-centric approach and its ability to broaden the market’s accessibility, which makes the company a valuable addition to TPG’s portfolio of leading European tech enterprises.

Vinted’s recent €340 million secondary investment marks a significant milestone in its evolution as a leader in the second-hand fashion marketplace. With a robust growth trajectory and a commitment to sustainability, the company is poised for further success as it navigates the evolving landscape of consumer preferences. The involvement of TPG and other strategic investors will undoubtedly bolster Vinted’s capacity to enhance its offerings and expand its market presence, reinforcing its mission to make second-hand fashion the first choice for consumers across Europe and beyond. As Vinted continues to innovate and grow, it remains dedicated to promoting sustainable consumption practices and delivering value to its community of users.