eBay has reached an agreement to purchase Depop, a popular second-hand clothing app, from Etsy for $1.2 billion (£890 million). This acquisition is aimed at attracting a younger audience for eBay, and the deal is expected to be finalized in the second quarter of this year.
Founded in London in 2011, Depop will maintain its name, brand, and platform under eBay’s ownership. The purchase of Depop by eBay comes after Etsy acquired the app for $1.62 billion (£1.2 billion) five years ago.
Depop’s success has been driven by the increasing demand from Gen Z and Millennial consumers for sustainable fashion choices and second-hand items. The app boasts seven million active buyers, with nearly 90% of them under the age of 34. Notably, Depop’s sales in the US have surged by almost 60% in the past year.
eBay’s CEO, Jamie Ianonne, expressed confidence in the acquisition, stating that Depop’s marketplace aligns well with eBay’s existing offerings and positions the company for long-term growth. The fashion sector, a key driver for eBay, represents over $10 billion in annual gross merchandise volume (GMV). This move allows eBay to tap into a younger demographic and expand its presence in the recommerce industry.
Etsy’s CEO, Kruti Patel Goyal, sees this transaction as an opportunity to concentrate on the growth of the Etsy marketplace. The company believes that focusing solely on Etsy will benefit both buyers and sellers. Etsy is proud of Depop’s achievements and is optimistic about its future as part of eBay.
Peter Semple, CEO of Depop, expressed excitement about the collaboration with eBay, highlighting the potential for accelerated growth in the consumer-to-consumer fashion market. He emphasized Depop’s commitment to sustainability and the positive impact of the brand on the fashion resale industry.
The agreement signifies a new chapter for Depop, leveraging eBay’s expertise in the fashion space and shared vision for a more sustainable future. This strategic move is expected to propel Depop’s marketplace to new heights in the US and beyond.