Second-hand primarily fashion platform Vinted has closed a secondary share sale of €340 million which values the business at €5 billion.
Vinted said the transaction, led by asset manager TPG, validates its opportunity and progress in developing and growing the second-hand market globally.
The move also diversifies the company’s investor base with new expertise, while rewarding its employees and early investors with a payout for their contributions to Vinted’s success to date.
TPG Tech Adjacencies, TPG’s strategy dedicated to providing flexible capital solutions to the technology industry, is the specific vehicle funding the investment. Other major investment funds participating in the round include Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. And all Vinted’s existing institutional investors remain with skin in the game.
In 2021, at the time of Vinted’s last fundraising round, the company had a pre-money valuation of €3.5 billion. Gross merchandise value has grown by more than 3.5 times since then, and the Lithuanian-based has become fully profitable.
Vinted has been a key influential factor in the wider retail industry building their own strategies around second-hand sales, uncovering a real consumer demand for recommerce.
According to Vinted, in recent weeks, it has begun the roll-out of a new category for electronics. Additionally, the company has expanded its shipping business in the Netherlands, Belgium, and France. Furthermore, Vinted’s payments business has acquired an EMI license and is working on solutions to improve how members transact on the marketplace.
Thomas Plantenga, CEO of Vinted, said: “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. Vinted shows it’s possible to have a successful, profitable business that positively impacts people, communities, and the environment.”
Andy Doyle, Partner at TPG, commented: “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.”
[image credit: Vinted Group]
