Secondhand trend platform Vinted is contemplating a secondary share sale, price greater than 200 million euros. The platform, which is presently working at a loss, is trying into its capital construction. Which means that is presently not planning an IPO.
In 2021, the Lithuanian secondhand trend market made 118 million euros in losses. In Might that 12 months, it raised 250 million euros in progress capital from buyers. The corporate was then valued at 3.5 billion euros.
Income progress of 51%
Final 12 months, the corporate generated a income of 370.2 million euros, which was a progress of 51 % in comparison with a 12 months earlier. Its pre-tax losses narrowed, to 47.1 million euros.
Vinted’s pre-tax losses narrowed to 47.1 million euros in 2022.
Now, the corporate is debating choices for its capital construction, based on the Monetary Instances. One of many choices is a secondary share sale, which might be price over 200 million euros. This might additionally improve the corporate’s valuation, whereas additionally producing money for early buyers.
No plans for an IPO but
Earlier this 12 months, Vinted’s CEO Thomas Plantenga already introduced that the corporate is technically prepared for an IPO. Nevertheless, it desires to spend money on sustainable progress of the corporate first. “My job is to elucidate to our buyers why these longer paths of constructing one thing larger create a greater return”, the CEO mentioned.
The plans will not be closing but.
A brand new funding spherical within the type of a secondary share sale could possibly be a strategy to create that sustainable progress. If the corporate’s valuation will probably be even increased afterwards, that might result in a extra profitable IPO afterward. Nevertheless, sources additionally cautioned that Vinted’s discussions with monetary advisors are nonetheless at an early stage, so they may change.