Vinted closed another year in red. The second hand platform has concluded the financial year 2021 with some net losses of 118 million euroswhich means five times the ‘red numbers’ of the previous year, as reported by the Dutch magazine ‘Quoted’.
The losses are mainly due to huge marketing expenses. Specifically, last year 2021, Vinted spent a whopping €193 million on advertising, three times more compared to the previous year. On the contrary, income has increased, Vinted generated €245 million in revenue in 2021, compared to €184 million in turnover in 2020.
However, despite the losses, it appears that the company’s growth strategy has worked so far. Vinted raised €250 million from investors last year and, according to the annual report, it should continue to be adequately funded. At the end of 2021 there was still 239 million euros of liquid cash capital. The last reported valuation of the company prior to the financing round in May 2021 is 3,500 million euros.
That is why the company does not seem to be concerned about the fivefold increase in its losses in the last year. As the report points out, “The directors have chosen to spend some of the remaining cash on marketing to increase the growth rate of the business”.
East 2022Despite massive advertising pressure, Vinted sales have increased by 37% in the first nine months of the year. As reported Statistain Germanythe number of monthly visits has no longer registered such a significant increase.