eBay has reached an agreement to acquire the popular second-hand clothing platform Depop from Etsy for $1.2 billion. This acquisition is aimed at appealing to a younger audience and is expected to be finalized in the second quarter of this year.
Founded in London in 2011, Depop will maintain its brand, name, and platform under eBay’s ownership. The purchase comes five years after Etsy bought Depop for $1.62 billion. The surge in interest from Gen Z and Millennial consumers for sustainable fashion and second-hand shopping has driven Depop’s success.
With seven million active buyers, predominantly under 34 years old, and a nearly 60% increase in sales in the US over the past year, Depop has shown significant growth. eBay’s CEO, Jamie Ianonne, expressed confidence in Depop’s potential within eBay, emphasizing the alignment of their market strategies and the shared goal of targeting a younger demographic.
Kruti Patel Goyal, CEO of Etsy, highlighted the strategic focus this transaction provides for Etsy to enhance its core marketplace offerings. The move is seen as beneficial for both companies and aligns with Etsy’s vision for future growth opportunities.
Peter Semple, Depop’s CEO, welcomed the acquisition, emphasizing eBay’s expertise in the consumer-to-consumer fashion sector. He sees this partnership as a catalyst for accelerating Depop’s growth in the US and beyond, acknowledging the positive trajectory the company has experienced.
The deal signifies a significant milestone for Depop, showcasing its evolution as a prominent player in the fashion resale market. The transition to eBay is expected to further strengthen Depop’s position and expand its reach globally.