Vinted, an online platform for second-hand clothing, raised 250 million euros to support its further expansion. During the financing round, the Lithuanian company was estimated to be worth 3.5 billion euros.
New markets on the rise
Vinted is growing rapidly: the second-hand platform has raised another 250 million euros to enable further expansion. The company will use the funds to enter new markets and further improve the payment systems and shipping options.
The company's valuation in the financing round is particularly striking. The Swedish investment group EQT, which took the lead in the capital round, now values Vinted at 3.5 billion euros. This is what business newspaper the Financial Times reported.
Up to 50 per cent of the fashion market
In a previous capital round at the end of 2019, investors were still assuming a valuation of 1.1 billion euros. In the meantime, however, the app has expanded to the United Kingdom and Italy, among other countries. Furthermore, the Covid crisis has inspired many people to clean out their wardrobes, while the demand for second-hand clothes continues to grow. Nevertheless, CEO Thomas Plantenga does not disclose any recent sales figures.
The market is still in its early stages, says Plantenga. He expects second-hand clothing to account for half of the total fashion market in the long run. Boston Consulting Group takes a more cautious stance and predicts a share of more than 25 per cent by 2023. The American second-hand platform ThredUp went public in March and has seen its share price rise by 34 per cent since then. More and more traditional retailers, from H&M to Zalando, are also venturing into the second-hand market.