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: This second-hand clothing platform teens are crazy about has just been valued at $4.2 billion

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Online second-hand clothing marketplace Vinted has been valued at €3.5 billion ($4.2 billion) in its latest fundraising round, highlighting growing investor appetite for e-commerce businesses which have boomed during the pandemic.

Lithuanian-headquartered Vinted raised €250 million in the Series F round led by Swedish private equity group EQT Growth, EQT
EQT,
+2.89%

EQT,
+0.19%

said in a statement on Wednesday.

Founded in 2008, Vinted’s platform allows consumer-to-consumer fashion sales where users can list and sell second-hand clothes. The company, which now has more than 45 million users globally, was last valued at $1 billion in its fundraising round in November 2019.

Read: ThredUp will appeal to middle-income consumers who will be spending money on clothing post-COVID

Companies like Vinted are looking to cash in on a growing market for pre-owned fashion, as environmentally conscious younger customers look to reverse the throwaway fashion fashion culture.

“We are contributing to a seismic shift in the second-hand fashion market, enabling more sustainable, socially-responsible shopping habits,” Vinted chief executive Thomas Plantenga said. “Our platform offers a great, easy-to-use product and helps people experience the benefits of second-hand trade,” he added.

Read: Nike launches refurbished sneaker program

The market has also boomed during the pandemic as people stuck at home have turned to online shopping as a way of refreshing their wardrobes while shops stayed closed amid government imposed lockdowns.

That has spurred a number of digital resellers to go public in recent months. Shares in San Francisco-based ThredUp
TDUP,
+11.76%
,
which sells women’s and children’s apparel, opened 30% above the listing price in their stock market debut on Nasdaq in March. Second-hand marketplace Poshmark Inc.
POSH,
+1.25%

 saw its stock more than double on its first day as a public company in January.

Estimates compiled by ThredUp and GlobalData have forecast that the second-hand market could hit US$64 billion by 2024, up from US$28 billion in 2019.

EQT said it will support Vinted’s accelerated growth into new geographies, invest in the company’s platform and technology and help strengthen its position across core markets. Following the investment, Carolina Brochado, partner at EQT Growth, will join Vinted’s board. The transaction is expected to close in May, subject to customary approvals.

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