Lithuania’s first tech unicorn Vinted is the largest online C2C platform in Europe dedicated to second-hand fashion. Now, the company took to the headlines again as it raised $303 million (nearly £215 million) in a Series F funding round.
UK expansion plans
The investment round was led by EQT Growth, with participation from each of Vinted’s previous lead investors: Accel, Burda Principal Investments, Insight Partners, Lightspeed Venture Partners, and Sprints Capital. Also, it takes the pre-money valuation of the company to $4.5 billion (nearly £3 billion).
Vinted will use the funds to help more people participate in the circular economy. This way, it will be able to work on its mission to make second-hand fashion the first choice. The company eyes to expand into new geographies both within Europe and beyond, continue to improve the overall member experience by investing into trust and safety, payments, shipping, infrastructure, and more.
In order to support these initiatives, Vinted has to continue expanding its team, which grew by 75% over the last 12 months. Currently, there are more than 700 people working with the company. The new investment will also include an expansion of Vinted’s Berlin office making it the location for key teams within Engineering and Product.
Thomas Plantenga, Vinted CEO, said: “Our platform offers a great, easy-to-use product and helps people experience the benefits of second-hand trade. We want to replicate the success we’ve built in our existing European markets in new geographies and will continue investing not only to improve our product, but also to ensure we continue to have a positive impact. We are delighted to be welcoming EQT Growth as our new investor and are grateful to our existing backers. We believe today’s milestone is a vote of confidence in our commitment to the circular economy and our relentless effort to build a business that encourages more people to buy and sell second-hand.”
EQT Growth Partner Carolina Brochado, who will also join Vinted’s board, said: “Vinted is transforming the second-hand fashion market across Europe through their customer-centric approach and extraordinary execution. Vinted is the perfect example of EQT Growth’s strategy of backing fast-growing European tech champions that tap into several macro trends, such as the increasing consumer demand for sustainability and continued penetration of online channels within fashion. We’re immensely proud and excited to be supporting Thomas and the Vinted team and we cannot wait to work together to further unlock the market for circular fashion.”
Focuses on circular economy
The latest investment indicates the growing global consumer appeal of second-hand fashion within a global apparel market forecast to reach $2.2 trillion in revenue by 2025. The shift towards second-hand products has accelerated rapidly in recent years. Especially, during the pandemic crisis, this trend saw a surge as consumers were looking for ways to shop without hindering their new work-from-home routines.
Founded in 2008 by Milda Mitkute and Justas Janauskas in Vilnius, Vinted has successfully scaled its business across Europe. As its growth journey continues, the company is placing increasing importance on supporting the communities it operates in. Last year, it donated over €1 million to foundations looking to develop treatments for COVID-19.