Etsy, Inc. To Purchase Secondhand Fashion Website Depop For $1.6 Billion
Etsy Acquires Depop In A Bid To Attract A Younger Audience
Etsy, Inc. has signed an agreement to acquire secondhand fashion website, Depop in a bid to attract a younger audience. Approximately 90 percent of the company’s active users are under the age of 26, a group Depop says is more environmentally conscious and driving the wider resale market. The privately-held, community-led marketplace for used fashion will be sold for $1.6 Billion, with the sale expected to finalize during the third quarter of 2021.
According to Depop’s monthly brand awareness surveys, it has high awareness for the Gen Z demographic within the resale sector. Depop is the 10th most visited shopping site among Gen Z consumers in the U.S.
Josh Silverman, Etsy, Inc. CEO, commented, “We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family. 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.”
Founded in 2011, Depop will continue to be headquartered in London, and operate as a standalone marketplace run by its existing leadership team. The business initially launched in the UK before expanding to the US and Australia. Today, the company has approximately 30 million registered users across nearly 150 countries and over 400 employees dedicated to its mission of building the world’s most diverse progressive home of fashion, that’s kinder on the planet and kinder to people.
Depop’s CEO Maria Raga said, “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. 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.”
Last year, Depop more than doubled revenue to $70 million, while its gross merchandise sales was around $650 million. The secondhand market is projected to grow at a 39% compound annual growth rate from 2019-2024 in the United States, reaching $64 billion. Meaning, the secondhand market is projected to grow twice the size of fast fashion on a global basis.
Etsy, Inc. headquartered in Brooklyn, NY, operates two-sided online marketplaces – Etsy and Reverb. The primary marketplace, Etsy.com is a global destination for unique and creative goods. Buyers come to Etsy to find unique items that are crafted and curated by creative entrepreneurs and sellers are offered a range of tools and services making it easy to hock their wares. Reverb is a global online marketplace dedicated to buying and selling new, used, and vintage musical instruments.
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