E-commerce firm Etsy (NASDAQ:ETSY) is buying second-hand fashion marketplace app Depop for $1.62 billion U.S. in an effort to reach a younger audience.
Founded in the United Kingdom in 2011, Depop has approximately 30 million registered users across 150 countries. The online marketplace gives people the ability to sell their used clothes and other items online.
The transaction is expected to close at the end of 2021, and Depop will retain its existing leadership team and headquarters in London, England.
The two companies said they saw a clear fit between Depop’s online resale model and Etsy, which has been connecting craftspeople with online shoppers for more than 15 years.
More than 90% of active consumers on Depop are Generation Z. Etsy said in a written statement that it is "thrilled" to be adding what it believes to be the "resale home for Gen Z consumers" with the Depop acquisition.
Depop had revenue of $70 million U.S. last year, a 100% year-over-year increase, according to the company.
