eBay has reached an agreement to acquire the popular second-hand clothing platform, Depop, from Etsy for $1.2 billion (£890 million). The acquisition is aimed at expanding eBay’s reach to a younger audience. Depop, established in London in 2011, will maintain its brand identity under eBay ownership. This transaction follows Etsy’s purchase of Depop for $1.62 billion five years ago.
The rising trend among Gen Z and Millennial consumers towards sustainable fashion and second-hand shopping has driven Depop’s success. The platform boasts seven million active buyers, primarily under the age of 34, with a substantial 60% increase in sales in the US over the past year.
Jamie Ianonne, eBay’s CEO, expressed confidence in the potential growth of Depop within eBay’s ecosystem. The fashion sector, a key driver for eBay, holds over $10 billion in annual gross merchandise volume in the US. This acquisition aligns with eBay’s strategy to tap into the expanding recommerce market and engage with a younger demographic.
Kruti Patel Goyal, Etsy’s CEO, highlighted the strategic shift towards enhancing the Etsy marketplace post-Depop sale. Etsy aims to leverage this transaction to focus on strengthening its core marketplace for buyers and sellers, viewing it as a positive step for all stakeholders involved.
Peter Semple, Depop’s CEO, emphasized the shared vision with eBay for a more sustainable future and accelerated marketplace growth. The collaboration is set to propel Depop’s expansion in the US and beyond, building on its distinct brand and product offering.
The deal signifies a significant milestone for Depop’s evolution and growth trajectory, reinforcing its position in the global fashion industry.
