Editor’s note: This article incorrectly stated Vinted had eight million users. The article now correctly states Vinted’s three million users.
VC’s are betting there’s big money in those old clothes in your closet. Lithuanian news sites are reporting that Vinted has just signed a €20 million Series B with Insight Venture Partners at a roughly €100 million post valuation. Accel also participated pro rata – previously Vinted raised $6.5 million from Accel Partners.
Alan Martinson at Baltic Startup Watch points out the 80m pre-money valuation makes Vinted the highest-valued startup in the Baltics. Vinted is still HQed in Vilnius, but is currently growing their team in San Francisco, where they are targeting the U.S. market. The company reportedly has three million users across all its sites.
Vinted is essentially an ecommerce platform for individual users to sell or swap clothes they wear – users take a picture of the clothes, name their own price, and get put into Vinted’s feed. After the payment goes through Vinted, the seller prints out a shipping label, attaches it to the package. Payment is returned after the buyer confirms everything is okay.
The company focuses on the buyer’s side of the equation, encouraging users to chat with the seller and tracking packages through Vinted’s shipping labels. Vinted takes a 19% cut of the transaction.
With this huge round the company must be putting that money into marketing to put an exponential number on their three million users. There are some competitors in this C2C fashion space – most notably eBay. But by making it mindless to be a seller through printable labels and so on, Vinted has plenty of capital to find room to grow.