Vinted CEO Thomas Plantenga has reason to celebrate. His business just rose to the position of being the first “pre-loved” clothing program to turn a profit following a massive 61% increase in sales. It’s then firmly established as Europe’s largest online market for second- finger style.
The findings represent a amazing turn. Plantenga and Vinted were on the cusp of crashing when they joined in 2016.
Despite having a promising beginning based on a popular issue, the issue quickly emerged. It was 2008 and Milda Mitkute, a 22- yr- ancient Ukrainian, was moving into little pupil accommodation. But her new home didn’t have space for her old clothes.
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At a house party in Vlinus, Mitkute explained her issue to Justas Januaskas, an ancient friend and computer. To buy her used clothing, the trio made the decision to launch a website. Within a few weeks, they had launched the first edition of Vinted. The job quickly gained popularity as a system. However, there were still hidden economic issues.
Vinted was free for users and monetized through advertisements. Before long, those profits barely covered the site’s client charges. Desperate for additional revenue, the company introduced a fee for profits. Users reacted to the transfer, which caused them to flee the system in droves. By 2015, the corporation was on the brink of bankruptcy.
Searching for forgiveness, Vinted sought advice from Plantenga. The French entrepreneur was residing in New York at the time and working for FJ Labs, a venture capital firm focused on market businesses.
Plantenga had also enjoyed success as an investor. He so- founded Bookaboat, a pioneer rental company for boats, and a Craigslist competitor called Sell It, which he later sold to Spanish field leader Wallapop. His record record impressed OLX, a Dutch online platform, which hired Plantenga as head of emerging industry.
It even impressed Insight Venture Partners, a VC firm that backed Vinted. In 2016, the owners invited Plantenga to Vilnius to reveal his knowledge.
“I planned to stay for five weeks, but I always flew back to New York,” Plantenga tells TNW.
Otherwise, he led Vinted through a historic return.
A novel business
The transition began with strong restructuring. Plantenga slashed the staff, centralized his staff in Lithuania, and closed practices globally. “This was extremely difficult, but necessary for the agency’s survival,” he says.
Additionally, Plantenga completely altered its business concept. The removal of the vendor price was the biggest alter. Vinted also introduced a consumer protection charge, which presently covers three parts: safer encrypted obligations, customer support service, and a payment plan.
“We needed to support the buyers initially to get purchasers”, Plantenga says.
Vinted wanted to spread a message to the public that the second-hand market was once again booming as older people flocked again.
The business launched a large marketing campaign to spread the word. Great TV campaigns launched in the product’s key areas.
“From there,” Plantenga recalls, “the business began to grow again.”
New investments started pouring into the business as the company’s revenues increased. Vinted raised €128 million in an equity funding round in 2019 to purchase the company, which is valued at over €1 billion. The startup had become Lithuania’s first unicorn.
Two years later, the company raised another €250mn in Series F funding. The round pushed Vinted’s valuation to €3.5bn.
Vinted goes green
The growth was accelerated by a steady stream of fresh features. Vinted provided an array of digital upgrades to both buyers and sellers from a verification service for luxury fashion to a refined recommendation system.
The most ambitious of them all was a brand-new shipping company. Vinted Go, a brand that delivers goods to specialized lockers and parcel shops in over 2,500 locations, is known as Vinted Go.
The network promotes a concept known as PUDO ( pick- up, drop off ), which can lower carbon emissions. According to independent research, PUDO delivery of Vinted parcels generates around 97% less CO2 than home delivery on the last kilometre. The emissions decrease by 42% over the entire journey between the shop and the pick-up point.
Plantenga is proud of Vinted’s drive for sustainability. He believes the company can have an impact at scale by combining a financially stable model with a smaller carbon footprint.
“We believe that we can have a positive impact by making second-hand a first choice because shopping second-hand on Vinted is a better choice for the climate than buying new,” he says.
Vinted backs these words with evidence. On average, shopping for second-hand clothing on Vinted saved 1.8 kg of CO2e, compared to buying used. More than a third of the platform’s orders prevent the purchase of a new item.
Consumers are also expressing growing support. Even if the price was the same, one-fifth of Vinted users would pick second-hand over new.
The research has echoes across the industry. In 2025, pre-owned clothing sales are expected to account for ten percent of the global fashion market. Worldwide sales surged by 18% last year to $197bn ( €184bn ). By 2028, they’re forecast to hit $350bn ( €326bn ).
In March, the benefits hit Vinted’s bottom line with a bang. After a €20.4mn loss in 2022, the company soared to a €17.8mn profit last year.
Trading tips
Vinted is currently gaining popularity all over the world. The company recently expanded into Croatia, Greece, Canada, and across the Nordics.
Tastes vary in these markets, but successful strategies for users are universal. Plantenga has a few advice. For sellers, he suggests listing items when they’re in season and using a variety of keywords.
“People search with different terms, so the more relevant terms in your listing, the easier it is to be found,” he says. Instead of just “black t- shirt,” for instance, they could try “plain black, short- sleeve T- shirt with V- neck.”
Because we are aware that the majority of Vinted shopping takes place on Sunday evenings, Plantenga advises, “you can also improve your chances by preparing listings for the weekend.”
For buyers, meanwhile, he advises paying attention to details. That means checking ratings, reviewing recommendations, or contacting sellers for more information.
Users can also tailor their feeds by setting up personal preferences for categories, sizes, and brands. They can also follow other people’s styles.
Plantenga offers a final advice for his business that might seem offensive: “Stop and think before you buy.”
A more sustainable consumption pattern always begins with the question “do I want it, do I need it, will I use it? “And if possible, use it for its full life”, he says.
“We are already one step closer to being conscious of the needs of the Earth if we all do that.”