From their work with purpose-led start-up teams, BurdaPrincipal Investments have made some observations where social purpose provides start-ups with distinctive competitive advantages.
Hubert Burda Media has invested EUR 20 million in the social marketplace Vinted.com. Founded in Vilnius, Lithuania, the company is an international mobile platform for selling vintage lifestyle items. The start-up is also a social network based around the lifestyles of millennials.
Individuality from millions of wardrobes
Vinted was founded in 2008 by the current CEO, Justas Janauskas, and head of marketing Milda Mitkuté in Vilnius, which remains the site of its headquarters. The founders’ vision is clear: “Vinted is synonymous with individuality. Vinted opens millions of wardrobes, and finds millions of individual pieces that mean something to their owners. Vinted serves every style and every character; each purchase, exchange and sale becomes a very personal moment that is shared with the community.”
Around 600,000 Vinted fans each day
The Vinted community has around 10 million registered members, a figure that is growing by more than 60% annually. More than 20 million lifestyle items are currently listed, and Vinted’s gross volume of goods moved exceeds EUR 100 million. More than 600,000 Vinted fans use the platform each day, and the average time spent on the app is an impressive 45 minutes.
Impressive business model
Martin Weiss, managing director of BurdaPrincipal Investments, explains: “We were impressed by Vinted’s huge, strongly growing and loyal community. The business model is perfectly scalable and will work in practically any country. As a key international provider of fashion and lifestyle media, we look forward to boosting the growth of Vinted.com.”
Vinted is currently active on nine markets, including Germany, France, the USA, the UK, Austria and the Baltic states. Further potential markets are to follow each year as part of a clear growth strategy.