eBay Acquires Depop for $1.2 Billion
Depop, a second-hand clothing app that has gained significant popularity among Gen Z shoppers, is being acquired by eBay for $1.2 billion (£890 million).
Etsy, the online marketplace, is selling Depop just five years after purchasing the UK-founded business for $1.62 billion.
eBay aims for the acquisition to help the over 30-year-old online auction company "reach a younger demographic across the expanding re-commerce landscape." Apps facilitating the buying and selling of used or "pre-loved" clothing and footwear have seen increased usage recently as younger consumers seek sustainable and affordable alternatives to traditional retail options.
According to Etsy, nearly 90% of Depop's seven million active buyers are under 34 years old. The platform also supports more than three million active sellers.
Depop has emerged as "one of the fastest-growing fashion resale marketplaces in the US," stated Kruti Patel Goyal, Etsy's chief executive.
"I am confident that Depop is well-positioned for its next phase of growth as part of eBay," she added.
Etsy acquired Depop in 2021 as part of a series of acquisitions intended to compete with major rivals such as Amazon. However, Etsy has since scaled back many of these deals. Following the announcement, Etsy's share price increased by 15% in after-hours trading.
