Lithuania’s Vinted Secures €5 Billion Valuation After Secondary Share Sale
A Record-Breaking Deal in the European Market
Vinted, a leading second-hand fashion marketplace based in Lithuania, has achieved a significant milestone by securing a new valuation of €5 billion (approximately $5.4 billion at current exchange rates). This impressive feat comes after the company closed a secondary share sale worth €340 million ($367 million), marking another successful transaction in the European market.
A Bumper Year for Secondary Market Transactions
This latest deal is part of a growing trend of secondary market transactions, particularly in Europe, where scale-ups are seeking to unlock liquidity for their employees and venture capital investors amidst a relatively sluggish initial public offering (IPO) market. In recent months, several notable companies have pursued secondary market routes, including neobanks Revolut and Monzo, which achieved lofty valuations based on strong user growth and profitability.
Fintech Giant Stripe’s Similar Path
In the United States, fintech giant Stripe also followed a similar path to unlock liquidity by reaching a private valuation of $65 billion in February. This figure later jumped to $70 billion as Sequoia sought a larger stake from existing investors. These developments demonstrate the growing appeal of secondary market transactions for companies seeking to tap into investor interest and create value for their stakeholders.
Vinted’s Remarkable Growth
Under the leadership of CEO Thomas Plantenga, Vinted has experienced remarkable growth since its previous €250 million Series F fundraise in 2021. The company was valued at €3.5 billion ($3.8 billion) pre-money at that time. Since then, Vinted has reported record revenue growth of 61% in 2023 compared to the previous year and achieved profitability for the first time. Additionally, Vinted has expanded its geographical presence and extended beyond its core fashion roots into the electronics realm.
Bay’s Response
Vinted’s growth trajectory prompted marketplace stalwart eBay to respond by removing seller fees in key European markets. This strategic move reflects the increasing competition and evolving landscape of the e-commerce industry.
Investor Retention
It is unclear how much Vinted’s existing investors cashed out, but the company confirms that all its existing institutional investors – including Accel, EQT, Insight Partners, and Lightspeed Venture Partners – have retained at least some stake. This retention demonstrates the confidence of these investors in Vinted’s continued growth and success.
Private Equity Giant TPG Leads Transaction
The secondary share sale was led by private equity giant TPG, with other new participants including Baillie Gifford, FJ Labs, Hedosophia, Invus Opportunities, Manhattan Venture Partners, and Moore Strategic Ventures. This diverse group of investors highlights the increasing interest in Vinted’s unique business model and growth prospects.
A Decidedly Tepid IPO Market
The secondary market transaction trend is partly driven by a relatively sluggish IPO market, which has made it more challenging for companies to list on public exchanges. However, as scale-ups like Revolut, Monzo, and Stripe demonstrate, the secondary market offers an attractive alternative for unlocking liquidity and creating value.
Conclusion
Vinted’s €5 billion valuation marks another significant milestone in the European market, underscoring the company’s remarkable growth and success. This achievement is a testament to the innovative business model and strategic decisions made by Vinted’s leadership team. As the secondary market continues to grow in popularity, it will be interesting to see how companies like Vinted navigate this evolving landscape and create value for their stakeholders.
About the Author
Paul Sawers is a senior writer based in London, covering the world of UK and European startups. With over a decade’s experience reporting on consumer and enterprise technologies, Paul has developed a keen eye for spotting emerging trends and opportunities. He can be reached at paul.sawers@techcrunch.com or Signal: PSTC.08.
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