Vinted has reportedly contacted investors about a share sale, which could value the company at as much as £3.9bn.
The resale platform has contacted investors to gauge their interest in a stock offering, which would involve existing private shareholders offloading part or all of their stakes, according to Sky News.
Vinted has been backed by six venture capital firms (amongst other private investors): Accel, Burda Principal Investments, EQT Growth, Insight Venture Partners, Lightspeed Venture Partners, and Sprints Capital.
Up to £156m worth of shares could change hands if the sale goes ahead. Investors are hoping the sale will lead to a valuation of around £3.8m for the company, according to the report.
Rumours of a similar share sale – also purportedly handled by Morgan Stanley – swirled last October, but did not materialize.
Since then, the previously loss-making group has turned to a profit. In the last financial year, revenue hit €596.3m (£503.2), up 61 per cent year on year. It also posted a net profit of €17.8m in 2023, up from a net loss of €20.4m in 2022.
Vinted has also been tipped for an IPO. Last year, chief executive officer Thomas Plantanga described the company as “technically IPO-ready” but added that he wanted to make the best long-term decision for the business.
A decline in disposable incomes and a surge in sustainable shopping, particularly among Gen Z customers, has encouraged a boom in second-hand clothing sales.
Vinted was founded in 2008 in Lithuania and, in 2019, became the country’s first unicorn.
It has grown to trade in 16 different countries including the US, Italy, Portugal, the UK, Germany and Canada.
Vinted was contacted for comment.