E-commerce group Etsy, which connects buyers and sellers of everything from wedding invitations to shoes and personalised wallets, has signed a definitive agreement to buy Depop.
The takeover target was founded in 2011 and is a fashion resale marketplace that recorded revenue of $70 million last year. It had 4 million active buyers and 2 million active sellers in 2020.
Josh Silverman, Etsy’s chief executive said: "We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family.”
He added that his firm believes there is significant potential to further scale Depop.
Etsy pointed out that Depop is the 10th most visited shopping site among Gen Z consumers in the US, and added that around 90% of Depop's active users are under the age of 26.
Etsy added that young consumers are adopting second-hand fashion faster than any other audience. According to YouGov more than a third of 18 to 25 year old British adults say they prefer to buy things second hand rather than new (35%).
The purchase is expected to complete during the third quarter of 2021.
Depop will continue to be headquartered in the capital and operate as a standalone marketplace run by its existing leadership team.
Depop’s boss Maria Maria Raga said, "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.”
James Wise, a partner at Balderton Capital which has invested in Depop, said: “From our seed investment eight years ago to today’s merger, almost every member of the Balderton team has worked with Depop in some way, big and small, and learnt a huge amount from Maria and her team in the process. We are incredibly proud of the Depop team.”