Vinted, the prominent European second-hand fashion retail powerhouse, is reportedly collaborating with investment bank Morgan Stanley to assess the feasibility of issuing €200 million worth of shares. This strategic move could pave the way for a potential stock market flotation, according to reports from the Financial Times.
The Lithuanian group is actively exploring financing options for its ambitious expansion plans, with considerations including both the sale of existing shares and the issuance of new ones. However, sources mentioned in the Financial Times suggest that retaining the current ownership structure may also be a viable option, contingent on an improved economic climate.
While Vinted and Morgan Stanley have refrained from official comments on the matter, these financial maneuvers have the potential to enhance the valuation of the Vilnius-based company, possibly surpassing the €3.5 billion valuation achieved in May 2021.
During that earlier funding round, Vinted successfully secured €250 million in investments from notable backers, including Accel, Burda, Insight Partners, Lightspeed, and Sprints. These funds were earmarked for fueling the company’s expansion endeavors across Europe and beyond, with a specific focus on penetrating the lucrative US market.
Vinted holds the impressive position of being the third-largest online fashion retailer in Europe, trailing only behind industry giants Zalando and Shein, as revealed in the Cross-border Commerce Europe (CBE) barometer, which scrutinized the top 250 players in the category.
Having been founded in 2008, Vinted has adhered to a strategy of enticing an ever-growing community of sellers and aiming to achieve profitability, a goal that remains a work in progress. This strategic direction is significantly reinforced by the surging popularity of the second-hand fashion market, further accentuated by recent inflation in the new product market. As part of its quest to elevate its offerings and appeal to professional sellers, the company recently introduced its product verification service in five key markets.
In the year 2022, Vinted celebrated a remarkable 51% growth in sales, accumulating a total of €370.2 million. Concurrently, the company effectively reduced its losses from a previous €118.2 million to a more manageable €47.1 million. With a workforce of 1,502 employees, Vinted proudly boasts a vast membership base of 80 million individuals, spanning across 19 European and American markets.
