Online second-hand clothing marketplace Vinted secures $141 million in funding
The resale market is on the rise, and one company leading the charge is Vinted, a used clothing and item marketplace based in Lithuania. In a recent funding round, Vinted raised 128 million euros ($141 million), according to an announcement on Nov. 28.
The funding round was led by Lightspeed Venture Partners, with other investors including Baillie Gifford also participating. This investment marks a significant step for Vinted, allowing the company to expand its operations in Europe.
Vinted's appeal to consumers lies in its commitment to sustainability. The platform facilitates the exchange of 1.3 billion euros worth of merchandise this year alone, making it a popular choice for environmentally-conscious shoppers. According to the platform's website, Vinted has survived economic ups and downs, demonstrating its resilience in the market.
The resale market is projected to reach $51 billion by 2023, according to ThredUp, indicating a bright future for companies like Vinted. In fact, many well-known brands are jumping on the resale bandwagon. Ralph Lauren is considering resale and rental options of its own, while Burberry has announced a collaboration with The RealReal.
Macy's and J.C. Penney have also partnered with resale companies to sell used apparel in their brick-and-mortar stores. Macy's has partnered with ThredUp to sell used apparel in 40 stores, while J.C. Penney has partnered with an unspecified resale company to sell used apparel in 30 of its own stores.
The Kardashian-Jenner family has even entered the resale market with Kardashian Kloset, allowing consumers to shop for apparel featured in their wardrobes. The RealReal, another prominent player in the resale market, raised $300 million during its Nasdaq debut in June.
Even Goodwill, the well-known charity organisation, has partnered with OfferUp to sell used goods. This partnership marks a shift in Goodwill's business model, as it seeks to capitalise on the growing resale market.
In addition to Vinted, Lightspeed Venture Partners has also invested in other successful companies such as Stitch Fix, Bonobos, and Rothy's. This investment in Vinted allows Lightspeed Venture Partners to further expand its reach in the European market.
The resale market is growing, and companies like Vinted are at the forefront of this trend. With its commitment to sustainability and its strong financial backing, Vinted is poised to continue its success in the years to come.
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