Vinted is back in the black after 61% sales increase
Second-hand marketplace Vinted is back in the black, exceeding expectations for ‘planned growth’ after revenues increased by 61% to £509.8 million (€596.3 million).
Adjusted EBITDA was £65.4 million (€76.6 million) and net profit was £15.2 million (€17.8 million), compared to a net loss of £17.4 million (€20.4 million) in 2022.
How did it do this? By successfully driving growth on multiple vectors. This included a penetration into existing markets, geographic expansion and the introduction of a luxury fashion verification service. The group also developed its shipping services with Vinted Go and made initial steps to deepen the value chain with payment services.
Thomas Plantenga, CEO at Vinted Group, said: "Second-hand fashion is still a relatively immature market and only a tiny proportion of fashion overall. Our performance in 2023 was not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential. More importantly, growing C2C second-hand fashion is an impactful way to mitigate harm to the fashion industry and the reason behind our mission to make second-hand the first choice.
"For 2024, we will continue [our] mission, delivering against multiple growth vectors including geographic expansion and category development. We see many opportunities ahead, so we’ll continue to balance profitability against investment opportunities to accelerate towards our mission."
In Q4 of 2023, Vinted secured a €50 million revolving credit facility from BNP Paribas and ING Bank, for potential future investment or expansion opportunities, including M&A.
As the pre-loved market continues to thrive, thanks to affordable pricing and sustainable benefits, competitors eBay and Depop have also reported growth during 2023. To rival Vinted, which never charged sellers additional fees, Depop ditched its seller's fees in March with with eBay following suit in April. Now, on all three platforms, buyers are instead responsible for additional protection fees.
