Online second-hand clothing marketplace Vinted has raised €250m in a funding round led by Sweden’s EQT that valued the Lithuanian group at €3.5bn, underscoring growing investor interest in sustainable fashion.
The company, whose app allows users to buy and sell used garments, last raised funds in November 2019 at a valuation of €1.1bn. Thomas Plantenga, chief executive, said the jump reflected Vinted’s entry into new markets and the growth of sales on its app, along with a “very favourable” investment climate.
“When we did the last round, we were operating in France and Belgium and were off to a good start in Spain,” he said. “Now we are also running in markets like the UK and Italy and we’ve shown that we can enter new markets more quickly than before.”
He declined to give figures for the value of product sold on the app — the last available is €1.3bn for 2019 — or the revenue that the company makes from sellers’ fees and added-value services.
But he said that the proceeds will be used to enter new markets and further improve services such as payments and shipping. Previous investors including Accel, Burda, Insight Partners, Lightspeed and Sprints will also participate in the round.
Vinted is one of several ventures looking to bring used clothing into the mainstream, as younger consumers in particular become increasingly motivated by sustainability concerns over low prices.
Read More at : https://www.ft.com/content/27efa47e-87d2-4ac7-a751-3243100a6814