Online marketplace Vinted has posted a “strong” year of growth after it reached profitability for the first time and reported a surge in revenue.

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Vinted posted its first profit after “outpacing its planned growth”

The Lithuanian marketplace reported adjusted EBITDA of €76.6m (£65.5m), while net profit in 2023 reached €17.8m (£15.2m), up from a net loss of €20.4m (£17.5m) the previous year.

Vinted also posted a 61% increase in revenue year on year to reach €596.3m (£510m), up from €370.2m (£317m) in 2022.

The business said it “outpaced its planned growth” during the year despite an “uncertain macroeconomic backdrop”.

During the year, Vinted expanded geographically with launches in Denmark, Finland and Romania, bolstered its shipping services with Vinted Go, and made progress to “further deepen the value chain” with its payment services.

After acquiring secondhand specialist Rebelle in 2022, Vinted launched its item verification service last year, which allows Vinted members to trade and purchase with “increased safety”. The service is now available in nine markets.

Vinted has confirmed plans to continue rolling the verification service out to more markets and across further brands and categories this year.

During the fourth quarter, Vinted also secured a €50m (£42.7m) revolving credit facility from BNP Paribas and ING Bank, which it said will help with future investments and expansion opportunities.

Vinted Group chief executive Thomas Plantenga said: “Secondhand fashion is still a relatively immature market and only a tiny proportion of fashion overall. Our performance in 2023 was not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential.

“More importantly, growing C2C second-hand fashion is an impactful way to mitigate the harm of the fashion industry and the reason behind our mission to make secondhand the first choice.

“We have been deploying capital with high ROI for many years, constantly taking into account the financial sustainability of our investments, so I am pleased we are able to now share that we are operating profitably, and posted positive EBITDA for 2023.

“It’s a great testament to our team’s dedication and hard work in making Vinted a success for our members. And it is a strong foundation to continue to build on as we see many opportunities on the horizon.

“During 2023, our core marketplace performed strongly, we accelerated the development of delivery services with Vinted Go, and we made steps into the payments part of our value chain. For 2024, we will continue on this mission, delivering against multiple growth vectors, including geographic expansion and category development.

“We see many opportunities ahead, so we’ll continue to balance profitability against investment opportunities to accelerate towards our mission.”