Etsy to acquire global fashion marketplace Depop for $1.625 billion
Etsy has announced it has signed a definitive agreement to acquire global fashion marketplace Depop, for $1.625 billion.
Following the closing of the transaction, currently anticipated to occur during the third quarter of 2021, Depop will continue to be headquartered in London and operate as a standalone marketplace run by its existing leadership team.
Founded in 2011, Depop is a privately-owned, community-powered marketplace to buy and sell clothing, footwear, accessories and similar products.
Depop's 2020 gross merchandise sales (GMS) and revenue were approximately $650 million and $70 million, respectively, each increasing over 100% year-over-year.
According to Depop's monthly brand awareness surveys, it has high prompted awareness for the Gen Z demographic within the resale sector and is the 10th most visited shopping site among Gen Z consumers in the US.
Josh Silverman, Etsy CEO, commented, "We are simply thrilled to be adding Depop - what we believe to be the resale home for Gen Z consumers - to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale.
"Depop's world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy's DNA and mission of Keeping Commerce Human. We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous 'house of brands' portfolio of individually distinct, and very special, ecommerce brands."
Depop will significantly grow Etsy's GMS in the apparel sector, which was almost $1 billion in 2020. The marketplace is primarily known for its vintage, streetwear, one-of-a-kind and Y2K fashion.
