eBay has announced its acquisition of the popular second-hand clothing app Depop from Etsy for $1.2 billion (£890 million). This move is aimed at attracting a younger audience and is expected to be finalized in the second quarter of this year.
Depop, founded in London in 2011, will continue to operate under its current name, brand, and platform. The purchase comes five years after Etsy bought Depop for $1.62 billion (£1.2 billion).
The surge in interest from Gen Z and Millennial consumers in sustainable shopping habits has led to an increase in Depop’s popularity. The app boasted seven million active buyers by the end of last year, with nearly 90% of them under the age of 34. Sales in the US have also seen a significant uptick, rising by almost 60% over the past year.
eBay’s CEO, Jamie Ianonne, expressed confidence in the acquisition, stating that it will bolster eBay’s presence in the pre-loved fashion category. The incorporation of Depop into eBay’s offerings is seen as a strategic move to tap into the growing recommerce market and appeal to a younger demographic.
Etsy’s CEO, Kruti Patel Goyal, sees the transaction as a positive step for both companies. The focus will now be on advancing Etsy’s marketplace to better serve its buyers and sellers.
Peter Semple, Depop’s CEO, is optimistic about the collaboration with eBay, emphasizing the shared vision for a sustainable future and growth potential in the consumer-to-consumer fashion space. The deal signifies a new chapter for Depop, positioning the company for further expansion in the US and beyond.
