Vinted, the Lithuanian-founded secondhand marketplace, has announced the launch of its venture capital (VC) arm, setting its sights on UK start-ups. This move introduces fresh competition to the burgeoning UK re-commerce and resale market, which is already valued at £7bn, as leading platforms aim to leverage changing consumer behaviours influenced by inflation and sustainability concerns, as reported by City AM.
Vinted Ventures will concentrate on investments in growth-stage start-ups, with funding amounts ranging from €500,000 (£424,983) to €10m (£8.5m). A spokesperson for Vinted told City AM: "Vinted Ventures will be targeting e-commerce start-ups across Europe, including the UK." They continued: "We're always talking to interesting companies: it's about finding the best strategic fit and investing in the strongest startups that can benefit from us as a strategic partner."
London has notably become a hotspot for circular economy start-ups, with ventures such as Depop and By Rotation engaging Gen Z's increasing preference for secondhand fashion. Although Vinted has not confirmed plans to establish any of its investment team in the UK, the spokesperson mentioned: "Currently, the Vinted Ventures team is based in various locations in Europe – it's too soon to comment on future hiring."
Speaking to City AM, they shared that Vinted's new VC division is on the lookout for companies "trying to reshape consumption," including those innovating in logistics, payments, or throughout the wider re-commerce value chain. Vinted, the Vilnius-based company, is enjoying a robust performance with the announcement of its most recent financial figures. The firm recently reported significant revenue and profits, boasting an impressive 330 percent year-on-year increase.
Its expansion into new European markets and enhancements in logistics and payments contributed to these results. In an uncommon step for a scale-up of its size, Vinted has initiated a venture capital push akin to larger tech companies such as Coinbase, which have set up investment platforms to support start-ups that complement their own ecosystems.
The company has articulated that its primary objective with Vinted Ventures is not predominantly on financial returns but rather to foster growth within the re-commerce sector as a whole. Vinted's CEO, Thomas Plantenga, remarked: "Vinted is proof that it's possible to successfully scale a tech business that is both impactful and financially solid." He added: "The re-commerce space has enormous potential, hence we are excited to invest and grow start-ups that will ultimately benefit from the wider market."
Specifics regarding the initial ventures of Vinted Ventures are currently undisclosed, but the focus on UK start-ups signals a strong commitment to the re-commerce market. This initiative comes at a time when consumer behavior is increasingly shifting towards sustainability and circular economies, making it a timely and strategic move for Vinted.
As Vinted Ventures prepares to make its mark, the implications for the UK re-commerce landscape could be significant. With a valuation of £7bn, the market is ripe for innovation, and Vinted's entry could spur further investments and competition among existing players.
In conclusion, Vinted's venture capital arm represents not just an expansion of its business model but also a broader trend within the tech industry where established companies are increasingly looking to invest in emerging start-ups that align with their values and market strategies. As the re-commerce sector continues to grow, Vinted's initiative could help shape its future.
