American e-commerce giant Etsy today announced that it’ll acquire London-based fashion marketplace Depop for $1.625 billion, most of which will be paid in cash, to reach younger consumers.
Founded in 2011 by Simon Beckerman, Depop is a highly popular second-hand shopping and trading platform of which 90% of the audience are under 26. Besides its trending app, its website is currently the 10th most visited shopping site among Gen Z consumers in the United States, Etsy announced in its press release.
Last year, the company generated $650 million in gross merchandise sales (GMS) and $70 million in revenue, which both grew by 100% YOY. It currently has 30 million active users from over 150 countries.
“We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale.’’ said Etsy CEO Josh Silverment. ‘’Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy’s DNA and mission of Keeping Commerce Human. We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, ecommerce brands.“
The companies announced that the transaction will be closed sometime in the third quarter of 2021. Depop will remain headquartered in London and its existing leaders will run the operations of the standalone marketplace.
“We’re on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop. Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes, but stay for the culture.’’ said Depop CEO Maria Raga ‘’We’ll now take an exciting leap forward as part of the Etsy family, benefiting from Josh’s and his team’s expertise, and the resources of a much larger company whose values are so aligned with ours here at Depop.”