Etsy is Buying Secondhand Fashion App Depop for $1.62B
E-commerce marketplace Etsy is buying resell fashion app Depop for $1.62 billion, CNBC reported. Depop was founded in the U.K. in 2011, and is popular predominantly with Gen Z shoppers. The app allows consumers to buy and sell used clothes through its online marketplace, and promotes ethical shopping.
Etsy expects to finalize the deal by the third quarter of 2021. Depop, which has approximately 30 million registered users over 150 countries, will keep its headquarters in London and will operate as a standalone business.
Total Retail's Take: The purchase of Depop represents the largest acquisition in Etsy's history. During the COVID-19 pandemic, the trend of secondhand fashion accelerated as consumers decluttered their closets and earned money by selling old clothes. Acquiring Depop is a great way for Etsy, whose customer base is primarily millennials, to attract a new audience: Gen Z shoppers. Gen Z shoppers continue to show they're looking for more sustainable and environmentally friendly ways to shop, and Etsy's acquisition of Depop provides that option.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.