Etsy buys fashion resale marketplace Depop for $1.6 bn
Etsy is all set to acquire global fashion resale marketplace Depop and has signed an agreement in relation to the acquisition.
Brooklyn
Etsy, Inc operates two-sided online
marketplaces that connect millions of passionate and creative buyers and
sellers around the world, has signed an agreement to acquire Depop, a
privately-held, community-led, and purpose-driven marketplace for unique
fashion. The transaction value is estimated to be $1.625 billion. The
transaction may be closed during the third quarter of 2021.
Depop will continue to be headquartered
in London, England and operate as a standalone marketplace run by its existing
leadership team. Founded in 2011, Depop is a community-powered marketplace to
buy and sell unique fashion.
Etsy believes that Depop has a highly
differentiated position in the fast-growing resale space as approximately 90%
of Depop’s active users are under the age of 26 and young consumers are
adopting second-hand fashion faster than any other audience. Depop is the 10th
most visited shopping site among Gen Z consumers in the U.S.
Josh Silverman, CEO, Etsy, Inc,
commented that, Depop’s world-class management team and employees have done a
fantastic job nurturing this community and driving organic, authentic growth in
a way that aligns well with Etsy’s mindset. He added that, there would be
significant opportunities for shared expertise and growth synergies across a
tremendous ‘house of brands’ portfolio of individually distinct, and special,
ecommerce brands.
Depop is primarily known for its vintage,
streetwear, one-of-a-kind and Y2K (late 1990s/early 2000s) fashion.
Depop’s CEO Maria Raga said that, their
community is made up of people who are creating a new fashion system by
establishing new trends and making new from old. They come to Depop for the
clothes, but stay for the culture. Depop will take an exciting leap forward as
part of the Etsy family, and the resources of a much larger company whose
values are in line with Depop.
Following the close of this transaction,
Etsy Inc. will operate three highly
differentiated, non-commoditized and loved ecommerce brands: Etsy, Reverb, and
Depop.
Source: Etsy Investor Relations
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