Secondhand clothing marketplace Vinted has pulled in 250 million euros ($303 million) from investors. Women’s Wear Daily reported that the money will go toward funding international expansion — including hiring more workers, adding more memberships and beefing up infrastructure. In addition, the new funds will go toward expanding Vinted’s new Berlin office.
The funding round, led by EQT Growth, gives the company a valuation of 3.5 billion euros, the publication said. All the previous Vinted investors also participated in the latest round — including Accel, Burda Principal Investments, Insight Partners, Lightspeed Venture Partners and Sprints Capital.
Vinted, which has 45 million members, sells mostly vintage and high-street clothing. The Lithuanian company has gained momentum over the last year. Vinted expanded its team by 75 percent to more than 700 people. In fact, it was one of Lithuania’s first unicorns. The company said its goal is to turn secondhand fashion into consumers’ first choice.
“We are contributing to a seismic shift in the secondhand fashion market, enabling more sustainable, socially responsible shopping habits,” said Vinted CEO Thomas Plantenga, who founded the retail platform in 2008. “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 secondhand.”
Carolina Brochado, a partner at EQT Growth, pointed to the growing opportunity for digital-first platforms to address customers’ increased concerns around the environmental impact of clothing. She will be joining the Vinted board.
The market for secondhand goods has been on the rise. The so-called reCommerce market has grown for clothing as well. In addition to Vinted, there’s ThredUP, a secondhand apparel marketplace. “Resale is here to stay,” said ThredUP Co-founder and CEO James Reinhart. “The next question is who wins and who loses.” ThredUP’s annual report said the resale sector grew 25 times faster than the overall retail market in 2019.
May 12, 2021 at 04:30PM