Lithuanian second-hand fashion e-tailer Vinted has reached a new milestone. A secondary shares investment led by asset management firm TPG has brought Vinted’s valuation beyond the €5 billion mark, after it had reached €3.5 billion during its previous funding round, carried out in 2021.

Vinted has sold €340 million worth of secondary shares to TPG, a specialist in alternative asset management, as well as to investors Hedosophia, Baillie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures. Existing institutional investors are all maintaining their stake in the company. The newly raised funds have enabled Vinted to reward its employees and its initial investors.

“TPG and our other new investors share our vision: to make second-hand the first choice, worldwide,” said Vinted’s CEO Thomas Plantenga. “We are incredibly proud to have built a product that our members love to use, and that has created a market for second-hand fashion. Vinted shows it’s possible to have a successful, profitable business that positively impacts people, communities, and the environment,” he added.

While the European fashion market has been hit by the effects of inflation on consumer expenditure, Vinted experienced a 61% revenue growth in 2023, reaching €596.3 million. The company also recorded a double-digit EBITDA margin.

Vinted recently set off in a new strategic direction by introducing a non-fashion product category for the first time, consumer electronics. This is not stopping the group from continuing to expand its range of apparel, footwear and accessories by targeting luxury products, notably via its product authentication service deployed a year ago. Vinted has chosen France, its largest market, to test its own logistics operations business, Vinted Go.

The e-tailer has long relied on massively growing its user numbers and expanding its range in order to achieve profitability. Now that the latter goal has been reached, Vinted could venture into new product categories. “We believe that we are perfectly capable of creating excellent product proposals by expanding our business into new categories,” Vinted Marketplace CEO Adam Jay told FashionNetwork.com recently.