Etsy is buying Gen Z-focused fashion resale app Depop for $1.62 billion

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Josh Silverman, CEO of Etsy.
Adam Jeffery | CNBC

E-commerce firm Etsy announced Wednesday that it is buying the second-hand fashion marketplace app Depop for $1.62 billion as part of an effort to reach a younger audience.

Founded in the U.K. in 2011, Depop claims to now have approximately 30 million registered users across 150 countries. The online marketplace gives people the ability to sell on 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 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, ecommerce 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.”