Keep knowledgeable with free updates
Merely signal as much as the European firms myFT Digest — delivered on to your inbox.
Vinted has posted an annual revenue for the primary time as Europe’s largest on-line market for used garments additionally loved speedy income progress amid the rising curiosity in shopping for and promoting of second hand vogue.
The Lithuanian start-up, a lot loved by fashionistas throughout the continent, made a internet revenue of €18mn final 12 months versus a lack of €20mn in 2022. Gross sales elevated by 61 per cent to €596mn.
“Second-hand vogue continues to be a comparatively immature market and solely a tiny proportion of vogue general. Our efficiency in 2023 was not solely proof that we will ship sturdy progress however that we’re on the forefront of a market with big potential,” mentioned Thomas Plantenga, Vinted’s chief government.
Based in 2008, Vinted was final valued at €3.5bn in Might 2021. It has been options for its capital structure together with a secondary share sale forward of a possible inventory market itemizing.
It’s positioning itself as Europe’s main participant within the sustainable fashion market, aiming each to get extra prospects in additional international locations to purchase and promote used garments and to enhance logistics for delivering items between customers.
“Rising consumer-to-consumer second-hand vogue is an impactful strategy to mitigate the hurt of the style trade and the rationale behind our mission to make second-hand the primary alternative,” added Plantenga.
Traders and bankers say that start-ups trying to float must be worthwhile, not like within the earlier decade when low rates of interest led to shareholders being extra seduced by progress prospects.
Plantenga confused that Vinted had traditionally invested closely, and nonetheless noticed “many alternatives on the horizon”. It secured a €50mn revolving credit score facility on the finish of final 12 months from BNP Paribas and ING Financial institution for future funding or growth plans, together with takeovers.
The Vilnius-based group is current in international locations from the US and UK to France, Germany and Italy. It began in Denmark, Finland and Romania final 12 months.
It’s transferring away from purely being a market to providing different providers equivalent to Vinted Go, a delivery service that has its personal lockers for purchasers to ship and acquire garments in France. Vinted added that it will make investments closely in Go in France, the Netherlands, and Belgium specifically this 12 months.
Final 12 months it secured an digital cash establishment licence from the Lithuanian central financial institution to permit it to supply prospects fee providers in addition to buying a verification service for luxurious garments in 2022 in an intention to make shopping for and promoting high-value objects safer.
Plantenga mentioned: “We see many alternatives forward, so we’ll proceed to stability profitability in opposition to funding alternatives to speed up in direction of our mission.”