Given that the trend for used clothing is still popular, Vinted has turned a profit for the first time, BBC reported.
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.
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.
Social media influencers and celebrities have also helped to overhaul associations with musty, out-of-fashion, charity shop stock.
A recent report from US-based second-hand retailer ThredUp suggests that the market for used fashion is now worth tens of billions of dollars a year in Asia, North America and Europe.
However the size of the new clothes market, and the trend towards lower quality "fast fashion" products, mean it is hard for second-hand platforms to make a profit.
"In recent years, the likes of Vinted and Depop have ploughed millions into growing their headcount and expanding their audience, as they looked to capitalise on the second-hand trend," Natalie Berg, a retail analyst, said.
Vinted seemed to have profited from his gamble. Its business requires scalability because to its low prices and lack of seller fees, which may eventually lead to the opening of new revenue sources like advertising."
The privately held company Vinted said that it had added a third to its workforce. 2,000 people work for it presently, the most of whom are in Lithuania. /BGNES