Lithuania’s leading second-hand fashion platform, Vinted, has hit a significant milestone, with its valuation soaring to €5 billion. This achievement marks a huge step not only for the company but also for Lithuania, positioning the country as a growing hub for tech innovation and talent.
A Major Success for Lithuania’s Startup Ecosystem
The country’s first unicorn—startups Vinted is a peer-to-peer marketplace that primarily focuses on second-hand fashion. Gintarė Verbickaitė, head of Unicorns Lithuania, sees Vinted’s success as a clear example of Lithuania’s ability to foster high-value technology businesses. According to Verbickaitė, the company’s growth showcases the potential for attracting both talent and capital, reinforcing Lithuania’s growing reputation in the tech world.
On Thursday, Vinted announced the completion of a major transaction, selling shares worth €340 million from existing investors and employees. This round of investment, led by U.S. private equity firm TPG, pushed the company’s value to €5 billion. Other investors involved include Hedosophia, Bailie Gifford, Invus Opportunities, FJ Labs, Manhattan Venture Partners, and Moore Strategic Ventures.
Employee Success and Global Reach
One notable aspect of this recent transaction is that it offered Vinted employees, both in Lithuania and abroad, the chance to cash out their investments. Of the €340 million raised, €100 million came from employee shares, reflecting the significant value they’ve helped build within the company. Vinted currently employs nearly 2,000 people, with 1,465 based in Lithuania.
Inspiring Future Growth
Verbickaitė emphasised that Vinted is an excellent role model for Lithuania’s startup ecosystem, inspiring both budding entrepreneurs and established companies. She pointed out that startups like Vinted contribute to Lithuania’s economy through job creation, tax payments, and long-term commitments, while also attracting international capital and talent.
“Lithuania’s future lies in technology companies that create high added value,” said Verbickaitė. “Vinted is a perfect example of how startups can grow into global businesses, boosting the economy and inspiring others to take on new challenges.”
A Fast-Growing Sector
Lithuania’s tech startup scene is booming. Data from Unicorns Lithuania reveals that in 2023, Lithuania’s startups were valued at nearly €14 billion, making it the fastest-growing startup ecosystem in Central and Eastern Europe. Startups operating in Lithuania contributed €202.5 million to the state budget in the first half of 2024, marking a 10% increase from the previous year.
Looking ahead, Unicorns Lithuania aims to have the country’s ICT sector account for 20% of Lithuania’s GDP by 2030. The association calls for ongoing improvements in education and migration systems, as well as building a strong innovation ecosystem to ensure long-term growth.
