Secondhand fashion platform Vinted is considering a secondary share sale, worth more than 200 million euros. The platform, which is currently operating at a loss, is looking into its capital structure. This means that is currently not planning an IPO.
In 2021, the Lithuanian secondhand fashion marketplace made 118 million euros in losses. In May that year, it raised 250 million euros in growth capital from investors. The company was then valued at 3.5 billion euros.
Revenue growth of 51%
Last year, the company generated a revenue of 370.2 million euros, which was a growth of 51 percent compared to a year earlier. Its pre-tax losses narrowed, to 47.1 million euros.
Vinted’s pre-tax losses narrowed to 47.1 million euros in 2022.
Now, the company is debating options for its capital structure, according to the Financial Times. One of the options is a secondary share sale, which would be worth over 200 million euros. This could also increase the company’s valuation, while also generating cash for early investors.
No plans for an IPO yet
Earlier this year, Vinted’s CEO Thomas Plantenga already announced that the company is technically ready for an IPO. However, it wants to invest in sustainable growth of the company first. “My job is to explain to our investors why these longer paths of building something bigger create a better return”, the CEO said.
The plans are not final yet.
A new funding round in the form of a secondary share sale could be a way to create that sustainable growth. If the company’s valuation will be even higher afterwards, that could lead to a more successful IPO later on. However, sources also cautioned that Vinted’s discussions with financial advisors are still at an early stage, so they could change.