Vinted, the second-hand clothing marketplace, is prepping for a secondary share sale worth around €200 million ahead of a potential initial public offering (IPO), according to reports from the Financial Times.
Valued at €3.5 billion back in May 2021 when it underwent a sixth round of fundraising, the online platform is hopeful shares this time around will be at a premium, although specific prices are yet to be confirmed.
Aiming to provide some cash for early investors while also reviewing the capital structure, the Lithuanian-based start up is working with Morgan Stanley (NYSE:MS) on the fundraising round and future IPO plans.
New shares could be issued by the company on top of the sale of existing stakes, with owners even considering keeping the structure of the company as it is, a source close to the matter revealed.
Rampant inflation, rising interest rates and the drive to be more sustainable have all helped fuel a boom in second-hand clothing, with cash-strapped buyers willing to look for ‘pre-loved’ products to secure a deal.
Operating in 16 different countries including the US, Italy, Portugal, the UK, Germany and Canada, Vinted was created as a website in 2008 as a way for co-founder Milda Mitkute to shift some of her clothes after moving house.
Fast forward to today and the company, which became Lithuania’s first unicorn, boasts 75 million users, with the secondary clothing market not expected to slow down anytime soon.
Overall, the secondary clothing market is estimated to be worth around US$177 billion globally, but this figure could almost double by 2027, outpacing the overall market by about three times, research from ThredUp revealed.
Earlier this year, Vinted’s chief executive officer Thomas Plantenga revealed the company was “technically IPO-ready” but noted it was not viewing going public as a milestone but rather an option on the path to building a lasting business.