Vinted has been valued at $3.5 billion after raising $303 million in its latest round of funding.
The company has vowed to use the proceeds to “help more people participate in the circular economy” and make second-hand fashion the first choice for consumers.
Vinted has said it will invest in the overall member experience by improving the trust and safety for users on the site as well as improving infrastructure, shipping and payment options.
The circular economy model has gained pace during the pandemic, with fashion outlets closing their doors amid Covid restrictions.
The second-hand vintage website said it would continue to increase its team, which has already grown by around 75 per cent over the last year to over 700 employees.
Vinted say that its new investment signifies the growing appeal of second-hand fashion within the global clothing industry that’s forecast to reach $2.2 trillion in revenue by 2025.
“We are contributing to a seismic shift in the second-hand fashion market, enabling more sustainable, socially-responsible shopping habits,” Vinted chief executive Thomas Plantenga said.
The company also donated over €1 million to charities looking to develop treatments for Covid-19 last year as it promises to place greater importance on supporting the communities it operates in.
The news of Vinted’s valuation has marked a startling change in fortune for the company, which became Lithuania’s first unicorn in 2019 after nearly going bankrupt in 2016.