Etsy is acquiring Depop, the second-hand fashion app, for $1.6bn, as the handmade goods marketplace expands its portfolio to younger consumers.
Revenues at London-based Depop, which was founded in 2011, more than doubled last year to $70m, mainly from sales commissions. Its active network of 4m buyers and 2m sellers traded goods worth about $650m in 2020.
More than 90pc of Depop users are under 26, compared with about 39 for users of Etsy’s own online marketplace.
Josh Silverman, the chief executive of Etsy, said he was thrilled to add the “resale home for Gen Z consumers” to its portfolio.
“Depop is a vibrant, two-sided marketplace with a passionate community, a highly differentiated offering of unique items and we believe significant potential to further scale,” he added.
The deal, which Etsy said would be funded via available liquidity, is expected to close during the third quarter of 2021.