eBay has reached an agreement to acquire Depop, a popular second-hand clothing app, from Etsy for $1.2 billion (£890 million). The acquisition is aimed at tapping into a younger demographic, with the deal expected to be finalized in the second quarter of this year.
Founded in London in 2011, Depop will continue to operate under its current name, brand, and platform following the acquisition. The move comes five years after Etsy purchased Depop for $1.62 billion (£1.2 billion).
The surge in demand from Gen Z and Millennial consumers for sustainable fashion and pre-owned items has propelled Depop’s growth. The platform boasted seven million active buyers by the end of last year, with nearly 90% of them aged under 34. Sales in the US have surged by almost 60% over the past year.
eBay’s CEO, Jamie Ianonne, expressed confidence in Depop’s potential within the pre-loved fashion market. The acquisition is seen as a strategic move to bolster eBay’s presence in the rapidly expanding recommerce sector and to engage a younger audience.
Kruti Patel Goyal, CEO of Etsy, emphasized the focus on enhancing Etsy’s marketplace growth opportunities post-transaction. The move is viewed as beneficial for Etsy’s shareholders and a positive step for all parties involved.
Peter Semple, CEO of Depop, highlighted the alignment of values and shared vision for a sustainable future with eBay. The partnership is expected to accelerate Depop’s marketplace growth in the US and beyond, building on their strong brand and product offerings.
The transaction signifies a significant milestone for Depop, reflecting its remarkable growth trajectory and market position in the fashion resale industry.