US private equity major TPG is in discussions to acquire a stake in Europe’s largest second-hand fashion platform, Vinted, at a valuation of €5bn following rapid expansion at the Lithuanian company, according to a report by the Financial Times.
The report cites familiar with the matter as confirming that TPG is negotiating a transaction that would involve the purchase of several hundred million euros worth of existing shares in Vinted, although the deal has yet to be finalizsed. If successful, this would mark a significant milestone for Vinted, which was last valued at €3.5bn in May 2021.
Founded in 2008, Vinted has experienced rapid growth as consumers increasingly turn to second-hand goods. The company has been working with Morgan Stanley to explore options for restructuring its capital, including a secondary share sale ahead of a potential public listing. A sale of existing shares would give current shareholders, including employees, the opportunity to sell portions of their stakes.
If completed, the TPG-led deal would represent an impressive valuation increase for Vinted, especially considering the current challenges in venture capital markets, which have seen a slowdown since the post-pandemic boom of 2021 and 2022.
Vinted recently posted its first annual profit, with surging sales positioning it as a leader in the sustainable fashion sector. The company reported a net profit of €18m in 2023, a notable improvement from a €20m loss in 2022. Sales also grew by 61%, reaching €596m. Operating in countries including the US, UK, France, Germany, and Italy, Vinted has been expanding its presence and launched in Denmark, Finland, and Romania last year.
TPG, which manages $229bn in assets, has a history of backing consumer-focused companies, such as India’s Reliance Retail and Neiman Marcus.
Vinted has been previously been supported by major investors including EQT, Accel, Burda Principal Investments, Insight Partners, Lightspeed, and Sprints. Representatives from TPG, Vinted, and Morgan Stanley declined to comment on the ongoing talks.
