E-commerce giant Etsy has announced that it is buying the secondhand fashion app Depop for $1.62 billion. Depop is an online marketplace that allows its users to buy and sell secondhand clothing and is especially popular with Gen Z consumers.
The company was founded in 2011 and since then has built a large following of young, eco- and ethical shopping-conscious users. As CNBC reports, Depop has over 30 million users across 150 countries. Etsy itself boasts almost 82 million buyers and 4.4 million sellers.
“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,” Etsy CEO Josh Silverman said in a statement. “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 is just the latest company trading in used clothes to see a lot of action this year. In January secondhand fashion reseller Poshmark soared after its IPO. However, while platforms like Poshmark and Depop are thriving on secondhand goods, there still remain questions over the sustainability benefits of such initiatives.
As for the Etsy–Depop deal, it will see Etsy pay $1.62 billion in mostly cash and is expected to close by the third quarter of 2021. Etsy says after the deal is concluded it will continue to run Depop as a standalone business, so users of the app shouldn’t see many differences, if any.