Etsy Is Buying Depop

The $1.6 billion deal is expected to close later this year.

Etsy announced its plans to acquire the secondhand fashion marketplace Depop for $1.6 billion, in a deal that’s expected to close in the third quarter of 2021, the New York Times reports.

“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,” Etsy CEO Josh Silverman said in a statement, as reported by CNBC, noting the platform’s “passionate community” and “highly-differentiated offering of unique items.”

“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,” he continued.

Depop was founded in the U.K. in 2011 and has become a go-to shopping destination for Gen Z (according to the New York Times, 90% of its 30 million users are under the age of 26) and sustainability-minded consumers alike. Maria Raga, the company’s CEO, described it as “where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop,” per CNBC.

The secondhand fashion market has been consistently growing over the past few years, even with the pandemic. Looks like that growth’s here to stay.

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Source: Fashionista.com