eBay has made a deal to acquire Depop, a popular second-hand clothing app, from competitor Etsy for $1.2 billion (£890 million). This move is aimed at appealing to a younger audience, with the transaction expected to be finalized in the second quarter of this year.
Depop, founded in London in 2011, will keep its brand, name, and platform intact under eBay’s ownership. The purchase comes five years after Etsy purchased Depop for $1.62 billion (£1.2 billion).
The rise in popularity of Depop can be attributed to the increasing demand from Gen Z and Millennial consumers for sustainable shopping options and pre-owned items.
As of the end of last year, Depop boasted seven million active buyers, with nearly 90% of them under the age of 34. The app’s sales in the US have surged by almost 60% over the past year.
Jamie Iannone, eBay’s CEO, expressed confidence in the acquisition, highlighting Depop’s strong presence in the pre-loved fashion market and its alignment with eBay’s strategic goals. The deal is seen as an opportunity to enhance eBay’s position in the fashion segment and tap into a younger customer base.
In response, Kruti Patel Goyal, CEO of Etsy, emphasized the company’s focus on growing the Etsy marketplace, stating that the transaction with eBay allows them to concentrate on their core business objectives. She praised Depop for its unique brand identity and rapid growth in the fashion resale sector.
Peter Semple, Depop’s CEO, shared his excitement about joining forces with eBay, citing the potential for accelerated marketplace growth in the US and beyond. He sees the acquisition as a testament to Depop’s progress and evolution as a brand with a strong community following.
The transaction underscores eBay’s commitment to the consumer-to-consumer fashion market and the shared vision for sustainability and opportunity in the industry.