Etsy has announced that it is acquiring the UK based secondhand fashion app Depop for $1.62 billion
Depop, which was founded in 2011, is the go-to app for Gen Z where you can sell and buy second-hand clothing. Depop has around 30 million registered users in total across 150 countries. Depop is one of the most visited shopping site among Gen Z customers in the U.S.
“Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe the significant potential to further scale,” Etsy CEO Josh Silverman said in a statement Wednesday.
“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, e-commerce brands.”
Depop’s CEO Maria Raga said in a statement that Depop is “where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop.”
She added:” Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes, but stay for the culture.”
Around 90% of Depop’s users are under the age of 26 and this will give a very good opportunity to Etsy to access the younger demographic. The deal is going to close by the third quarter of 2021. After the acquisition, the Dopop will be headquartered in London