Vinted establishes venture capital division, targeting UK-based start-ups for investment.
Hear ye, hear ye! The Lithuanian digital flea market, Vinted, (yep, that's right, they're venturing into the big leagues**) has upped the ante by setting up their very own venture capital arm.
This bold move introduces more heat to the UK's rapidly blossoming secondhand sales arena, now valued at a whopping £7 billion, as industry titans rush to capitalize on the surge in eco-conscious and fiscally prudent consumer behavior.
Settling their sights on growth-stage start-ups, Vinted Ventures is ready to dish out investment between half a million Euros and a hefty ten million Euros (that's around £425,000 to £8.5 million for you Brits).
A representative from the retail powerhouse chattered with City AM about their plans, stating that "Vinted Ventures will be stalking e-commerce start-ups across Europe, including the UK." They further added, "We're always keeping tabs on promising companies; it's all about finding the best match and investing in the crème de la crème of up-and-coming businesses that would benefit from our strategic partnership."
Guess where the tech trend is headed? That's right, London's been crowned the home of circular economy start-ups, with fashion-forward companies like Depop and By Rotation tapping into Gen Z's insatiable appetite for pre-owned treasures.
While the company has kept mum about future hiring for Vinted Ventures in the UK, the representative hinted that the investment team already sprawls across various European capitals - for now, at least.
So what kind of brands tickle their fancy? Companies that are shaking up consumption patterns, especially those pioneering advancements in logistics, payments, or other essential sectors within the re-commerce ecosystem.
The venture's inaugural investments remain a well-guarded secret, but they have just reported a bumper year, with revenue skyrocketing to €813.4 million (around £691.8 million) and a net profit of €76.7 million (£65.23 million), marking a jaw-dropping 330% year-on-year increase. They expanded into new markets and scaled their logistics and payment services.
Big tech companies like Coinbase have also followed suit, launching investment platforms to back startups that align with their respective ecosystems. Vinted aims to use its newly minted venture capital arm to boost the re-commerce market as a whole, rather than focusing solely on financial returns.
As the company's CEO, Thomas Plantenga, put it, "Vinted is proof that it's possible to build a successful tech giant that both has a meaningful impact and solid financials. We're super stoked about the potential of the re-commerce landscape, so we're excited to put our money where our mouth is and help boost startups that will ultimately thrive in this market."
So, keep your eyes peeled for the initial investments from Vinted Ventures – they ain't talking just yet.
Insights:- Vinted Ventures focuses on investing in Series A to C stage companies within the re-commerce sector.- Investments range between €0.5 million to €10 million.- The venture aims to shape consumer behavior in favor of second-hand products.- Vinted Ventures is looking for companies developing solutions in areas such as logistics, payments, or across the wider re-commerce value chain.
- Vinted, the Lithuanian digital flea market, has added a new arm to its business – Vinted Ventures – which will focus on investing in growth-stage start-ups within the re-commerce sector.
- Setting their sights on Europe, including the UK, Vinted Ventures aims to dish out investment between half a million Euros and a hefty ten million Euros.
- London has been crowned the home of circular economy start-ups, with companies like Depop and By Rotation tapping into Gen Z's insatiable appetite for pre-owned treasures, mirroring the strategy of Vinted.
- While the initial investments of Vinted Ventures remain a well-guarded secret, the venture has reported a bumper year, with revenue skyrocketing and a net profit marking a significant year-on-year increase.
- Big tech companies like Coinbase have also launched investment platforms to back startups that align with their respective ecosystems, as Vinted aims to use its venture capital arm to boost the re-commerce market as a whole.
- The CEO of Vinted, Thomas Plantenga, believes that the company's success demonstrates the potential of the re-commerce landscape and is excited to invest in startups that will ultimately thrive in this market.
