Etsy to buy second-hand fashion marketplace Depop for $1.62bn

Depop will continue to be headquartered in London and operate as a standalone marketplace

American e-commerce company Etsy is buying UK-based fashion app Depop in a deal worth $1.62bn and consisting primarily of cash.

Etsy said the transaction was “subject to certain adjustments for Depop’s working capital, transaction expenses, cash and indebtedness, and certain deferred and unvested equity for Depop management and employees”.

Depop, which enables people to buy and sell used clothes through its online platform, will continue to be based in London and operate as a standalone marketplace run by its existing leadership team, while benefiting from “shared expertise in areas such as product, marketing, technology and customer support”.

The transaction is expected to be completed during the third quarter of 2021.

Young consumer base

Etsy CEO Josh Silverman said the company was “thrilled” to be adding what it believes to be the “resale home for Gen Z consumers” to Etsy's portfolio.

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Depop has a predominantly young audience with approximately 90% of its active users under the age of 26, Etsy stated. It is also the 10th most visited shopping site among Gen Z consumers in the US.

Depop CEO Maria Raga said: “Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old“.

Depop has a community of approximately 30 million registered users across nearly 150 countries, with four million active buyers and two million active sellers as of 2020.

The deal marks the biggest acquisition for Etsy since it went public on the New York Stock Exchange in 2015.

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Further reading: UK retail sales surge 9.2% as lockdown eases

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