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Vinted posted an annual profit for the first time as Europe’s largest online marketplace for used clothing also reported rapid sales growth amid rising interest in buying and selling second-hand fashion.
The Lithuanian start-up, popular with fashionistas across the continent, posted a net profit of 18 million euros last year, compared to a loss of 20 million euros in 2022. Sales rose 61 percent to 596 million euros.
“Second-hand fashion is still a relatively immature market and only makes up a tiny proportion of fashion overall. “Our performance in 2023 was evidence not only of our ability to deliver strong growth, but also that we are at the forefront of a market with enormous potential,” said Thomas Plantenga, CEO of Vinted.
Vinted was founded in 2008 and was last valued at 3.5 billion euros in May 2021. The company was exploring options for its capital structure, including a secondary sale of shares ahead of a possible listing.
The company is positioning itself as Europe’s leading player in the sustainable fashion market and aims to both encourage more customers in more countries to buy and sell used clothing and improve the logistics of delivering goods between consumers.
“Expanding the distribution of second-hand fashion from consumer to consumer is a powerful way to mitigate the damage to the fashion industry and the reason for our mission to make second-hand fashion the first choice,” Plantenga added.
Investors and bankers say startups seeking an IPO need to be profitable, unlike in the last decade when low interest rates meant shareholders were more enticed by growth prospects.
Plantenga emphasized that Vinted has invested heavily in the past and still sees “many opportunities on the horizon.” The company secured a €50 million revolving credit facility from BNP Paribas and ING Bank late last year for future investment or expansion plans, including acquisitions.
The Vilnius-based group is present in countries from the US and UK to France, Germany and Italy. It started last year in Denmark, Finland and Romania.
It is moving away from a pure marketplace to offering other services such as Vinted Go, a shipping service that has its own lockers where customers can deliver and pick up clothes in France. Vinted added that it will invest heavily in Go this year, particularly in France, the Netherlands and Belgium.
Last year, the company received an e-money institution license from the Central Bank of Lithuania, allowing it to offer payment services to its customers and in 2022 to acquire a luxury clothing verification service to make buying and selling high-value items safer.
Plantenga said: “We see many opportunities before us, so we will continue to balance profitability against investment opportunities to move faster towards our mission.”