eBay has reached an agreement to purchase the popular second-hand clothing platform, Depop, from Etsy for $1.2 billion (£890 million). The acquisition is aimed at expanding eBay’s appeal to a younger audience and is set to be finalized in the second quarter of this year.
Founded in London in 2011, Depop is anticipated to maintain its name, branding, and platform under eBay’s ownership. The move comes five years after Etsy acquired 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 traction. At the end of last year, the platform boasted seven million active buyers, with nearly 90% of them below the age of 34. Its sales in the US have surged by almost 60% over the past year.
Jamie Ianonne, eBay’s CEO, expressed confidence in the acquisition, emphasizing Depop’s strong presence in the pre-loved fashion market and the potential for long-term growth within eBay’s ecosystem. He highlighted the significant role of fashion as a key driver for eBay, contributing over $10 billion in annual gross merchandise volume (GMV).
On the other hand, Kruti Patel Goyal, CEO of Etsy, indicated that the transaction allows Etsy to focus on enhancing its own marketplace, tailored to the needs of its buyers and sellers. Goyal praised Depop’s unique brand and community-driven approach, positioning it as one of the fastest-growing fashion resale platforms in the US.
Peter Semple, Depop’s CEO, welcomed the partnership with eBay, recognizing the alignment in their vision for a sustainable future and the potential to accelerate Depop’s growth in the US and beyond. The transaction signifies the substantial progress Depop has made in evolving its product offerings and strengthening its brand in the global market.