Lithuanian unicorn Vinted raises €340 million, reaches €5 billion valuation | EU-Startups

Lithuanian second-hand marketplace Vinted has strengthened its position as a European leader, recently raising €340 million in a financing round led by asset manager TPG. This new funding elevates Vinted’s valuation to €5 billion, following a significant valuation increase to €3.5 billion in 2021. 

Major investors, including Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures, joined the round alongside longstanding backers EQT, Accel, and Insight Partners.

Vinted plans to use the funds to expand into new markets and broaden its offerings beyond fashion. The platform, which allows users to buy and sell second-hand items with Vinted earning commission fees, has experienced rapid growth and profitability. Last year, Vinted reported a revenue increase of 61% to 596 million euros and achieved its first annual profit of 18 million euros, a substantial turnaround from a €20 million loss in the prior year. 

The platform’s gross merchandise value (GMV) has tripled since its last funding round, and it currently operates in 22 countries, with recent expansions into Finland, Greece, and Croatia. 

Alongside its expansion, Vinted has introduced new services, including a verification feature for designer and luxury items to reduce counterfeit risks in ten countries, as well as “Vinted Go,” a shipping service offering locker solutions to improve logistics in the Netherlands, Belgium, and France.

In response to the growing popularity of sustainable shopping, Vinted has diversified into new categories like electronics to remain competitive in the second-hand market. “Consumers increasingly see second-hand as a mainstay in their wardrobes, driven by sustainability and flexibility,” noted Andy Doyle, partner at TPG. Vinted CEO Thomas Plantenga added that the company is committed to making “second-hand the first choice, worldwide.”

Morgan Stanley & Co. International plc served as financial advisor and placement agent for the transaction, with legal support from Taylor Wessing and Cooley.