By Mark McSherry
Lithuania-based Vinted, the European second-hand C2C marketplace focused on fashion, has closed a secondary share sale of €340 million to a group of new investors led by TPG, at a valuation of €5 billion.
TPG Tech Adjacencies (TTAD), TPG’s strategy dedicated to providing flexible capital solutions to the technology industry, is funding the investment.
“The transaction, led by TPG (NASDAQ: TPG), a leading global alternative asset manager, validates Vinted’s opportunity and progress in developing and growing the second-hand market globally,” said Vinted.
“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.”
Other major investment funds including Baillie Gifford, Hedosophia, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures also participated. All of Vinted’s existing institutional investors remain invested in the company.
“In 2021, at the time of Vinted’s last fundraising round, the company had a pre-money valuation of €3.5 billion,” said Vinted.
“Since then, Vinted has increased its gross merchandise value (GMV) by more than 3.5x and has become fully profitable.
“In 2023, the company delivered revenue growth of 61% and had a double-digit EBITDA margin. Vinted has become the European leader in its field, encouraging people to adopt new consumption habits and today, more than a third (37%) of Vinted members say that second-hand makes up at least half of their wardrobe.
“This growth has been enabled by Vinted’s rigorous focus on ensuring its members get excellent value at the lowest possible cost.
“In the last year alone, Vinted marketplace expanded in existing markets, and launched into new markets including Finland, Greece and Croatia.
“The company also launched a new verification service to help members trade designer and luxury fashion items more safely. This feature is now live in 10 countries.
“In recent weeks, Vinted has begun the roll-out of a new category for electronics. And in parallel, the company has successfully 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.”
Vinted CEO Thomas Plantenga said: “We’re delighted to welcome new investors with the experience to support us through our next phase of growth, while continuing to benefit from the expertise of our long-term backers.
“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.
“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, Partner at TPG, said: “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. 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 tech businesses.”
Morgan Stanley & Co. International plc served as financial advisor and placement agent for the transaction. Taylor Wessing and Cooley provided legal advice to Vinted.