Etsy is buying fashion reseller startup Depop for $1.63 billion in a push to reach younger audience

E-commerce giant Etsy announced Wednesday that it is buying Gen-Z-focused fashion reseller Depop for $1.63 billion as part of its effort to attract younger shoppers. Depop is a U.K.-based second-hand fashion marketplace app that caters to a younger audience.

Founded in 2011 by Simon Beckerman, Depop provides a mobile application that allows users to buy, sell, discover, and explore various things. Depop claims to now have approximately 30 million registered users across 150 countries.

Depop is also the only European player to have recently entered the top 25 shopping apps by daily active users. The online marketplace enables people to sell their used clothes and other items in a similar way to apps like Gumtree and Shpock.

Etsy CEO Josh Silverman said in a statement that the company is “thrilled” to be adding what it believes to be the “resale home for Gen Z consumers” to Etsy.

“Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe the significant potential to further scale,” he said.

“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 DNA and mission of keeping commerce human. 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, e-commerce brands.”

Depop’s CEO Maria Raga said in a statement that Depop is “where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop.”

She added:” Our 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. We’ll now take an exciting leap forward as part of the Etsy family, benefiting from Josh’s and his team’s expertise, and the resources of a much larger company whose values are so aligned with ours here at Depop.”

The second-hand market seems to be gaining momentum in recent years. As we reported last month, Goldman-backed second-hand clothing startup ThredUp recently filed for IPO. ThredUp is a fashion resale marketplace that enables individuals to buy and sell clothing for women and children. ThredUp is one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories.