US Private Equity Group TPG Currently Negotiating Purchase of Stake in Lithuanian Second-Hand Fashion Company Vinted

The entry of TPG would enable investors to acquire shares worth several hundred million euros in the company. These are expected to be existing shares, which also gives Vinted employees and other shareholders the opportunity to sell parts of their holdings. Although the deal is not yet finalized, the valuation increase of Vinted would be remarkable, especially in light of the currently challenging situation in the venture capital markets, which have cooled down since the boom during the pandemic.

Vinted was founded in 2008 and was last valued at 3.5 billion euros in May 2021. The company achieved its first annual profit of 18 million euros last year, compared to a loss of 20 million euros in 2022. Revenue increased by 61 percent over the same period to 596 million euros, clearly positioning the company as a leading player in the growing market for sustainable fashion in Europe.

The strong demand for second-hand fashion has also attracted the interest of large corporations such as H&M, Zara, and Ikea, which also want to establish themselves in this market. For Vinted, this not only means growing business but also expanding its service offerings: With "Vinted Go", its own shipping service with lockers, the company aims to further improve logistics for its customers.

TPG, which manages assets worth $229 billion and has previously invested in consumer companies like Reliance Retail in India and Neiman Marcus, would be the latest investor in Vinted. The company has so far received support from EQT, Accel, and Insight Partners among others.

A successful conclusion of the negotiations with TPG would be another signal of the increasing importance of the second-hand market for both consumers and investors.