Vinted
Vinted is a consumer-to-consumer online marketplace focused on second-hand fashion items such as clothing, shoes, and accessories, founded in 2008 in Vilnius, Lithuania, by Milda Mitkutė and Justas Janauskas as a platform to facilitate the sale of Mitkutė's excess wardrobe during a move.[1] The company, headquartered in Lithuania with operations across Europe and beyond, connects individual sellers and buyers through a mobile app and website, emphasizing sustainability by promoting reuse over new production.[2] Vinted has experienced rapid growth, achieving unicorn status in 2019 with a €1 billion valuation and reaching a €5 billion valuation by October 2024 following a secondary share sale.[3] In 2024, the platform reported revenue of €813.4 million, a 36% increase from the prior year, alongside a net profit of €76.7 million, reflecting effective scaling in user base exceeding 100 million registered users and expansion into additional categories and markets.[4] Its business model relies on fees from optional buyer protection plans, shipping services, advertising, and seller tools, while maintaining low transaction costs to encourage high-volume peer-to-peer exchanges.[5] Notable achievements include becoming Europe's leading second-hand fashion platform and launching Vinted Ventures in 2025 to invest in complementary startups, though it has faced controversies such as a €2.3 million fine in 2024 from Lithuanian authorities for personal data processing violations and user reports of scams, harassment, and delivery delays.[6][7] These issues highlight challenges in moderating a large-scale C2C environment, yet Vinted's emphasis on cost control and innovation has sustained profitability amid rising demand for circular economy practices.[8]
History
Founding and Early Development
Vinted was founded in 2008 in Vilnius, Lithuania, by Milda Mitkutė and Justas Janauskas.[1] Mitkutė, facing a move with excess clothing, sought a way to offload items, prompting Janauskas to develop a basic website enabling her to list and distribute them to friends.[9] [10] The platform initially operated as a simple online tool for swapping or selling second-hand apparel among a small Lithuanian user base, reflecting a hobby project rather than a commercial venture.[11] Early iterations focused on peer-to-peer exchanges of women's clothing, with the prototype launched under a Lithuanian name translating to "my clothes."[11] By 2009, following initial traction in Lithuania, Vinted expanded to Germany as its second market, marking the beginning of international outreach.[2] This growth was driven by organic user adoption in a region where second-hand markets were nascent but culturally resonant, given historical constraints on new apparel access during the Soviet era.[9] In 2011, the platform entered its third market, further solidifying its European footprint, while a mobile app launched in 2012 enhanced accessibility and accelerated user engagement.[2] [12] These developments transitioned Vinted from a localized website to a scalable digital marketplace, emphasizing low-friction listings and community-driven transactions without early reliance on formal funding.[13]Growth and Funding Milestones
Vinted raised €5.2 million in its Series A funding round in January 2013, marking its first institutional investment to support early platform development.[14] This was followed by a €20 million Series B round in January 2014, enabling further expansion in Europe.[14] In December 2015, the company secured approximately €25 million ($27 million) in a Series C round led by Hubert Burda Media, which facilitated enhancements to its mobile app and marketplace features.[14][15] A €50 million Series D round arrived in August 2018, coinciding with revenue growth from €32.9 million in 2018 amid increasing user adoption for second-hand fashion transactions.[14][12] In November 2019, Vinted raised €128 million in a Series E round led by Lightspeed Venture Partners, achieving a €1 billion valuation and status as Lithuania's first technology unicorn; at that point, the platform had reached 30 million registered users.[12] The company's Series F round in May 2021 brought in €250 million led by EQT Growth, at a pre-money valuation of €3.5 billion, funding international scaling as the user base expanded to 65 million and annual revenue climbed to €245.1 million.[16][12] By 2023, revenue had surged 61% to €596 million with 105 million users, reflecting robust marketplace activity.[12] In October 2024, Vinted completed a €340 million secondary share sale led by TPG, valuing the company at €5 billion and providing liquidity to employees and early investors while supporting ongoing growth; this followed 2024 revenue of €813.4 million, a 36% year-over-year increase, alongside profitability.[3][4]| Funding Round | Date | Amount | Lead Investor | Valuation |
|---|---|---|---|---|
| Series A | Jan 2013 | €5.2M | Not specified | Not disclosed |
| Series B | Jan 2014 | €20M | Not specified | Not disclosed |
| Series C | Dec 2015 | €25M | Hubert Burda Media | Not disclosed |
| Series D | Aug 2018 | €50M | Not specified | Not disclosed |
| Series E | Nov 2019 | €128M | Lightspeed Venture Partners | €1B |
| Series F | May 2021 | €250M | EQT Growth | €3.5B (pre-money) |
| Secondary | Oct 2024 | €340M | TPG | €5B |
Key Acquisitions and International Expansion
Vinted's international expansion began shortly after its founding in Lithuania in 2008, with its first overseas launch in Germany in 2009, followed by the Czech Republic in 2011.[2] The company pursued organic growth into additional European markets, entering France, Poland, Austria, and the United States in 2013; the United Kingdom in 2014; Spain in 2016; and Belgium and Luxembourg in 2018.[2] This strategy accelerated in the late 2010s, with launches in the Netherlands in 2019, Italy in 2020, Portugal in 2021, Slovakia, Hungary, and Sweden in 2022, Romania, Denmark, and Finland in 2023, and Croatia, Greece, and Ireland in 2024, establishing operations across more than 20 countries by 2025.[2] Cross-border trading features, such as enabling German users to transact with those in the Netherlands starting in June 2023, further supported seamless European integration.[17] Acquisitions played a pivotal role in bolstering market penetration and capabilities, particularly in competitive second-hand fashion segments. In October 2019, Vinted acquired Spanish rival Chicfy, a marketplace with a user base focused on apparel sharing, allowing Vinted to consolidate its Spanish operations launched three years prior and migrate Chicfy users to its platform.[18] Similarly, the 2020 acquisition of Dutch competitor United Wardrobe strengthened Vinted's foothold in the Netherlands following its 2019 entry, integrating local users and inventory.[2] In August 2022, Vinted completed its takeover of German luxury second-hand platform Rebelle for approximately €30 million, enhancing offerings in high-end resale and leading to a full merger by March 2024, where Rebelle's platform closed and its users transitioned to Vinted.[19] Subsequent deals targeted logistics and Nordic expansion: In October 2023, Vinted Go, the company's shipping arm, acquired Dutch sustainable delivery firm Homerr to expand its parcel locker network by 3,000 points in the Benelux region, improving cross-border fulfillment efficiency.[20] In March 2024, Vinted purchased Danish marketplace Trendsales, Denmark's leading second-hand platform founded in 2002, six months after its own Danish launch, to solidify Nordic presence and integrate Trendsales' established user community.[21] These moves, combining organic scaling with targeted buyouts, enabled Vinted to capture dominant shares in key markets while addressing logistics bottlenecks inherent to C2C resale.[12]Business Model and Operations
Revenue Streams
Vinted's primary revenue stream derives from buyer protection fees charged on completed transactions. Buyers incur a fixed fee, typically ranging from €0.30 to €0.80 depending on the country and transaction size, plus a variable fee of 3% to 8% of the item's sale price (excluding shipping costs), which covers platform services including dispute resolution and secure payments.[22][23][5] This structure ensures sellers face no listing or commission fees, incentivizing supply on the platform while shifting costs to demand-side users.[24][25] Secondary revenues come from optional promotional tools for sellers, such as "bump up" features that elevate listings in search results for a fee, and "closet spotlight" or wardrobe promotion services that highlight a seller's entire inventory to increase visibility.[5][24][23] These paid enhancements, priced variably based on duration and prominence, encourage active sellers to boost exposure without mandatory costs.[26] The platform also generates income through third-party advertising displayed in user feeds and partnerships with shipping providers, where Vinted earns margins by negotiating discounted rates with couriers like DPD or UPS and charging users standard or premium shipping fees.[24][5][23] Limited reports indicate potential ancillary streams from premium subscriptions or data monetization, though these remain minor compared to transaction-based fees.[27] Overall, this buyer-centric model supported a 36% revenue increase to undisclosed figures in 2024, reflecting scalable growth tied to gross merchandise volume.[28]Core Platform Features
Vinted operates as a consumer-to-consumer (C2C) online marketplace primarily focused on second-hand fashion items, including clothing, accessories, shoes, and select categories such as toys, homeware, and electronics for pets.[29] [30] Users access the platform mainly through its mobile app, where core functionalities emphasize ease of listing, searching, and transacting without upfront seller fees.[29] The listing process allows sellers to upload items for free by taking up to 20 photos, adding a description, selecting categories and brands, and setting a price; listings become live immediately upon submission, with options to edit or promote them later.[31] Sellers are responsible for shipping purchased items within five days using tracked methods, after which buyers confirm receipt to release payment via Vinted's escrow system.[31] [32] Buyers utilize advanced search and filtering tools to discover items, including criteria for category, brand, size, color, price range, condition, and location-based proximity to reduce shipping times.[33] Once an item is selected, buyers can message sellers through in-app chat for negotiations or details, then complete purchases securely with integrated payment options; a buyer protection fee, typically 5-10% of the item price plus a fixed amount (varying by country), funds safeguards like refunds for non-delivery or misrepresented items.[32] [5] Upon delivery confirmation via tracking, funds are transferred to the seller's Vinted wallet or bank account, minus any optional promotion costs.[29] The platform enforces rules prohibiting counterfeit, illegal, or unsafe items, with moderation removing non-compliant listings.[34] Additional features enhance user interaction and trust, such as seller profiles displaying ratings, reviews, and sales history to inform buyer decisions. Users can create bundles for multiple items from the same seller to consolidate shipping and potentially negotiate discounts, though this relies on seller agreement.[35] Vinted Pro, available to verified high-volume sellers like sole traders, offers unlimited listings, bulk upload tools, and discounted shipping labels.[36] Package tracking integrates directly into order conversations, providing real-time updates from carriers.[37] These mechanics prioritize low-friction peer-to-peer exchanges while incorporating buyer-funded protections to mitigate risks inherent in unverified transactions.[27]User Experience and Marketplace Mechanics
Vinted operates as a consumer-to-consumer (C2C) online marketplace primarily through its mobile app, emphasizing a streamlined process for listing, browsing, and transacting second-hand fashion items without seller commissions. Users download the app to create profiles resembling social media accounts, enabling features like following sellers and viewing wardrobes, which fosters a community-driven shopping experience. The platform prioritizes ease of use with intuitive interfaces for uploading photos, adding descriptions, and setting prices, though web access is limited compared to the app.[29][38] For sellers, the process begins with free listings: users photograph items (up to 20 per listing), input details such as brand, size, and condition, and specify a price, with the item going live immediately upon upload. Upon receiving an offer or direct purchase, sellers must ship within five days using a platform-generated prepaid shipping label, which includes tracking; buyers typically cover shipping costs unless negotiated otherwise. Payments are held in escrow until the buyer confirms receipt and satisfaction, typically within two days of delivery, after which funds transfer to the seller's Vinted balance or bank account—no instant payouts are available. Optional paid features include "bumping," where sellers pay $0.95 to $2.95 (varying by market and item) to elevate listings in search results and feeds for increased visibility.[29][39][24] Buyers search via filters for categories, brands, sizes, and locations, with options to make counteroffers on listings—sellers can accept, decline, or negotiate via in-app chat. Purchases require selecting payment methods like credit card, PayPal, Apple Pay, or Google Pay, with total costs including the item price, shipping, and a Buyer Protection fee of 5% of the item price plus a fixed $0.70 (or local equivalent, e.g., €0.70 in Europe). Bundles allow buyers to combine multiple items from the same seller for discounted or single shipping fees, encouraging bulk purchases. Delivery estimates appear pre-purchase, and items arrive with tracking; buyers report issues like damage or misrepresentation within two days for potential refunds, though return shipping is generally buyer-paid unless the seller agrees otherwise.[29][40][41] Safety mechanisms include mandatory platform payments to prevent off-app transactions, profile ratings based on transaction history, and Buyer Protection covering non-delivery, significant damage, or item-not-as-described scenarios with refunds processed via Vinted's resolution center. However, seller protections are weaker, as payments release upon buyer confirmation without automatic disputes for unfounded claims. User experiences vary: the app's simplicity and zero seller fees earn praise for accessibility, enabling quick sales of preloved items, but frequent complaints highlight slow shipping from sellers, inadequate customer service (often bot-driven), scam attempts via fake profiles, and disputes over item conditions leading to withheld payments. Trustpilot ratings average 1.5 to 2.9 stars as of 2025, reflecting dissatisfaction with resolution times and perceived imbalances favoring buyers.[29][42][43]Financial Performance and Market Position
Revenue Growth and Profitability
Vinted achieved profitability for the first time in 2023, marking a significant milestone after years of investment in expansion.[44] The company's revenue reached €596.3 million in 2023, reflecting a 61% increase from €370.2 million in 2022, driven by user growth and marketplace enhancements.[44] [12] Adjusted EBITDA stood at €76.6 million, with net profit reported at €17.8 million.[44] [45] In 2024, revenue growth continued robustly at €813.4 million, a 36% rise from the prior year, supported by scaled operations and cost efficiencies.[4] [46] Net profit surged to €76.7 million, a 330% increase year-over-year, underscoring improved margins amid sustained demand for second-hand apparel.[46] [45] This performance followed strategic investments in platform features and international markets, which bolstered transaction volumes without proportional cost escalation.[4] [8]| Year | Revenue (€ million) | Growth (%) | Net Profit (€ million) |
|---|---|---|---|
| 2022 | 370.2 | - | Not profitable |
| 2023 | 596.3 | 61 | 17.8 |
| 2024 | 813.4 | 36 | 76.7 |
Valuation and Investor Backing
Vinted reached a post-money valuation of €5 billion in October 2024 via a secondary share sale of €340 million, led by TPG with participation from existing investors such as Hedosophia.[3][48] This transaction provided liquidity to employees and early shareholders amid the company's 61% revenue growth and first-time profitability in 2023, without primary dilution of equity.[3][28] The €5 billion mark surpassed Vinted's prior valuation of €3.5 billion, established in May 2021 after a €250 million Series F round led by EQT Growth, which drew in prior backers including Accel, Burda Principal Investments, and Insight Partners.[16][48] Earlier, Vinted achieved unicorn status in 2019 with a €1 billion valuation following a €128 million raise.[12] Across its funding history, the company has attracted investment from firms emphasizing growth in consumer marketplaces, including Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures.[48]| Funding Round | Date | Amount Raised | Lead Investor(s) | Post-Money Valuation |
|---|---|---|---|---|
| Late-stage VC | November 2019 | €128 million | Not specified in primary sources | €1 billion[12] |
| Series F | May 2021 | €250 million | EQT Growth | €3.5 billion[16] |
| Secondary Sale | October 2024 | €340 million | TPG | €5 billion[3] |