Vinted valuation hits $5.4 billion after secondary share sale provides liquidity

The popular second-hand fashion marketplace Vinted has seen its valuation increase to $5.4 billion after completing a significant secondary share transaction. Lithuanian company Vinted closed a $367 million secondary share sale led by the private equity firm TPG. Other new participants in the fundraising round included Baillie Gifford, FJ Labs, Hedosophia, Invus Opportunities, Manhattan Venture Partners, and Moore Strategic Ventures. It is unclear how much existing investors profited from cashing out portions of their holdings, but Vinted confirmed that all prior institutional backers such as Accel, EQT, Insight Partners, and Lightspeed Venture Partners maintained a stake.

This year has witnessed a spike in secondary market deal activity across Europe as high-growth startups look to provide stock liquidity for employees and venture capitalists in lieu of initial public offerings. In recent months, both Revolut and Monzo increased their valuations through secondary market transactions following strong user adoption and progression toward profitability. Stripe also undertook a similar path in the US, reaching a $65 billion private evaluation and later jumping to $70 billion when Sequoia sought a larger stake.

Vinted’s CEO Thomas Plantenga noted the sale rewards staff for their part in making the company a success story. The marketplace was last valued at $3.8 billion during its Series F round in 2021, which raised $250 million. Since then, Vinted has reported 61% yearly revenue growth and achieved profitability for the first time. Meanwhile, it continues geographic expansion and broadening beyond fashion into consumer electronics – forcing a response from industry heavyweight eBay to remove costs for sellers in key European markets.