eBay has agreed to acquire the popular second-hand clothing app Depop from Etsy for $1.2 billion (£890 million). The purchase is aimed at attracting a younger audience to eBay, with the deal expected to be finalized in the second quarter of this year.
Established in London in 2011, Depop will maintain its name, brand, and platform following the acquisition. The move comes five years after Etsy purchased Depop for $1.62 billion (£1.2 billion).
Driven by the increasing demand from Gen Z and Millennial consumers for sustainable shopping options, Depop has gained significant popularity. The platform had seven million active buyers at 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.
Jamie Ianonne, eBay’s CEO, expressed confidence in the acquisition, highlighting Depop’s success in the pre-loved fashion market. The purchase is seen as an opportunity for eBay to enhance its presence in the fashion category, which generates over $10 billion in annual gross merchandise volume (GMV).
Kruti Patel Goyal, Etsy’s CEO, emphasized the company’s focus on growing the Etsy marketplace for its users. Goyal believes that the transaction benefits Etsy’s shareholders and aligns with the company’s strategic direction.
Peter Semple, Depop’s CEO, remarked on the exciting prospects of joining forces with eBay. He sees the collaboration as a way to accelerate Depop’s marketplace growth in the US and beyond, leveraging eBay’s expertise in the consumer-to-consumer fashion sector.
The transaction signifies a new chapter for Depop, reflecting the platform’s commitment to sustainability and community building in the fashion resale market.
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