THE WHAT? Handmade goods marketplace Etsy has acquired second hand fashion app Depop in a $1.6 billion deal.
THE DETAILS The buyout is expected to close during the third quarter of 2021, with Depop continuing to be headquartered in London, UK, with its existing management team in place.
According to a press release approximately 90 percent of Depop’s users are under the age of 26, with the younger demographic adopting the trend of second-hand fashion faster than any other audience.
THE WHY? With Depop said be the 10th most visited shopping site for Gen Z consumers in the U.S., the acquisition is a savvy one for Etsy, which is hoping to tap into a younger audience.
Josh Silverman, Etsy, CEO, commented, “We are simply thrilled to be adding Depop – what we believe to be the resale home for Gen Z consumers –to the Etsy family. 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.
“We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, ecommerce brands.”