Etsy will acquire community-powered resale fashion marketplace Depop for $1.625 billion, consisting primarily of cash.
The crafty marketplace retailer believes Depop has a highly differentiated position in the fast-growing resale space. Approximately 90% of Depop's active users are under the age of 26 and young consumers are adopting second-hand fashion faster than any other audience, it said. Depop is also the 10th most visited shopping site among Gen Z consumers in the U.S.
"We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family,” Josh Silverman, Etsy, Inc. CEO, commented. “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, e-commerce brands."
Following the closing of the transaction, currently anticipated to occur during the third quarter of 2021, Depop will continue to be headquartered in London, England and operate as a standalone marketplace run by its existing leadership team.
"We're on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that's changing the way we shop,” said Depop's CEO Maria Raga. “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. We'll now take an exciting leap forward as part of the Etsy family, benefiting from Josh's and his team's expertise, and the resources of a much larger company whose values are so aligned with ours here at Depop."