eBay has reached an agreement to acquire the popular second-hand clothing platform Depop from Etsy for $1.2 billion (£890 million). The acquisition is aimed at tapping into a younger audience for eBay and is anticipated to be finalized in the second quarter of this year.
Founded in London in 2011, Depop is set to maintain its identity, brand, and platform following the transaction. The move comes five years after Etsy purchased Depop for $1.62 billion (£1.2 billion).
Depop has experienced a surge in demand, particularly from Generation Z and Millennial consumers, who are increasingly seeking sustainable options and embracing second-hand shopping.
As of the end of last year, Depop boasted seven million active buyers, with almost 90% of them aged under 34. The platform has witnessed a nearly 60% increase in sales in the US over the past year.
Jamie Ianonne, eBay’s CEO, expressed confidence in Depop’s potential within eBay, highlighting the platform’s strong position in the pre-loved fashion market. The acquisition is seen as a strategic move to enhance eBay’s presence in the fashion sector and attract a younger demographic.
Kruti Patel Goyal, CEO of Etsy, emphasized the focus on growing Etsy’s marketplace and expressed optimism about the transaction benefiting all parties involved. Goyal commended Depop for its unique brand and rapid growth in the fashion resale market.
Peter Semple, Depop’s CEO, welcomed the partnership with eBay, citing shared values of sustainability and growth. He sees the acquisition as a significant opportunity to accelerate Depop’s marketplace both in the US and globally.
The deal marks a pivotal moment for Depop as it looks forward to further expansion and innovation under eBay’s stewardship.