LONDON — In an indication that the round financial system is spinning quicker than ever, Etsy has bought the style resale app Depop for $1.6 billion.
The transaction will shut on the finish of 2021, and Depop is ready to retain its present management crew and headquarters in London.
The 2 corporations mentioned they noticed a transparent match between Depop’s on-line resale mannequin and Etsy, which has been working one of many largest two-sided marketplaces, and connecting impartial creators and craftspeople with web shoppers for greater than 15 years.
Depop, which has a big Gen Z viewers — over 90 % of lively customers are Gen Z — mentioned it is going to intention to leverage Etsy’s know-how, advertising and marketing and product experience to “speed up its mission of constructing essentially the most progressive residence of vogue” at a time when the second-hand market is booming and competitors stiffens.
Earlier this yr, Vestiaire Collective additionally acquired a $216 million investment from Kering and Tiger World, whereas Vinted, one other second-hand market, acquired a contemporary spherical of funding that shot up its pre-money valuation to three.5 billion euros.
“We’re on a journey constructing Depop into a spot the place the following technology involves discover distinctive vogue and be a part of a group that’s altering the way in which we store. Our group is made up of people who find themselves creating a brand new vogue system by establishing new developments and making new from outdated. They arrive to Depop for the garments, however keep for the tradition,” mentioned Depop chief govt Maria Raga, including that the corporate’s intention is to construct on the energy of its present group by leveraging “the assets of a a lot bigger firm.”
Based on the corporate, Depop had a income of $70 million final yr — a one hundred pc year-over-year improve.
Etsy mentioned that the platform’s regular progress and robust model consciousness amongst Gen Z customers made Depop a pretty goal.
“We consider Depop is the resale residence for Gen Z customers, with a passionate group, a highly-differentiated providing of distinctive gadgets, and vital potential to additional scale,” mentioned Josh Silverman, Etsy Inc. CEO.
“Depop’s world-class administration crew and workers have accomplished a unbelievable job nurturing this group and driving natural, genuine progress in a means that aligns nicely with Etsy’s DNA and mission. We see vital alternatives for shared experience and progress synergies throughout what’s going to now be an amazing ‘home of manufacturers’ portfolio.”