Vinted, Europe's largest online marketplace for second-hand clothing, has launched a share sale that could boost the company value to $5 billion (£3.9 billion).

According to a report from broadcaster Sky, investors were contacted earlier this month to gauge their interest in a secondary stock offering for the second-hand marketplace.

The share sales are expected to result in a reduction or discharge of ownership by the company’s existing shareholders, with Vintage shares worth between $200 million and $500 million potentially changing hands if the deal is successful.

Although the deal wouldn’t involve any new capital being deployed in the firm, executives and investors believe it could solidify a valuation of around $5 billion, said the report.

The launch of the secondary share sale, which is being handled by Morgan Stanley, comes after the Lithuanian marketplace published its annual profit in April, recording a net profit of €18 million in 2023 versus a loss of €20 million in 2022.

Sales recorded a 61 per cent increase year on year, reaching €596.3 million according to the report.

In May 2021, the business closed a fundraising round where it received support from a number of investors including EQT, Accel, Burda Principal Investments, Insight Partners, Lightspeed Venture Partners and Sprints Capital, with the firm’s value reaching €3.5 billion.

Established in 2008, Vinted has currently offices in Lithuania, Germany and the Netherlands, operating in 20 markets across Europe and the US. It has more than 1,800 employees according to its website.

Vinted did not immediately respond to comments.

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