Given that the trend for used clothing is still popular, Vinted has turned a profit for the first time.
According to its CEO, the company was "at the forefront of a market with huge potential".
In recent years, online marketplaces that let users sell their "pre-loved" goods directly to other users have become increasingly popular, reported BBC.
But Vinted, which has quickly grown throughout Europe, is the first company to break even, having turned a €17.8 million profit in 2022 from a €20.4 million (£17.4 million) loss.
Vinted's CEO, Thomas Plantenga, stated that although second-hand clothing still made up a "tiny" fraction of the market, the company was in a solid position.
According to him, Vinted has not only entered new markets such as Denmark, Finland, and Romania, but it has also expedited the development of its delivery service Vinted Go.
"We'll continue to balance profitability against investment opportunities to accelerate our mission," Mr. Plantenga stated. "We see many opportunities ahead."
Allowing consumers to trade with one another, he continued, would "mitigate the harm of the fashion industry".
According to Vinted, revenue for 2023 increased by 61% to €596.3 million (£509 million) over the prior year.
In 2022, the marketplace purchased Rebelle, a site that specialized in used designer clothing, and introduced a tool that authenticates costly things.
In recent times, Vinted and Depop, two comparable UK-based platforms, have gained popularity among British consumers, challenging eBay's initial hegemony in the used clothing market, especially among younger consumers.
The trend has been supported in part by the rising expense of living and growing awareness of the environmental impact of fashion.
Celebrities and social media influencers have also contributed to dispelling stereotypes of charity store inventory as dingy and out of style.
According to a recent survey by US-based thrift store ThredUp, the used clothes business in Asia, North America, and Europe is currently valued at tens of billions of dollars annually.
However, it is challenging for second-hand platforms to turn a profit due to the magnitude of the new clothing industry and the trend toward poorer quality "fast fashion" items.
The privately held company Vinted reported that it had also added a third to its workforce. 2,000 people work for it presently, the most of whom are in Lithuania./BGNES