Etsy has completed the acquisition of peer-to-peer social shopping app, Depop, for approximately $1.625 billion.
“We believe Depop to be the resale home for Gen Z consumers with a unique offering and highly engaged user base. With the closing of this incredibly exciting transaction, Etsy’s ‘house of brands’ portfolio now includes four individually distinct, and very special, eCommerce brands – Etsy, Depop, Reverb and Elo7 – with parallel growth strategies, all sharing similar missions, visions, and values,” said Josh Silverman, Etsy, Inc. CEO.
“We are excited to welcome the entire Depop community into the Etsy family and look forward to applying Etsy’s value creation roadmap to help them further drive growth.”
The acquisition positions Etsy to capture a larger share of the vintage clothing market, which is on track to be worth $64 billion by 2024, with more consumers gravitating toward sustainable shopping. The move will also help Etsy sustain its pandemic-driven momentum, which more than doubled the company’s revenue to $1.73 billion in 2020.
Etsy notes that Depop will continue to operate as a standalone marketplace run by its existing leadership team.
The London-based Depop was founded in 2011 and the platform currently serves more than 26 million users from over 147 countries. Ninety percent of its customers are under the age of 26. Much like Etsy, the app has also reportedly gained significant prominence over the past few years, becoming the 10th most visited eCommerce site among Gen Z consumers in the U.S.
The announcement to acquire the resale platform was first made back in June 2021.