The Strategist

Etsy buys Depop, popular among Gen Z, for $1.6B


06/03/2021 - 04:32



Etsy, the US-based online retailer of designer and handmade goods, announced that it has bought UK-based service Depop.



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The service specialises in the resale of clothing and is particularly popular with Generation Z. The deal is valued at $1.6 billion and is expected to be completed in the third quarter of 2012. Thereafter, Depop will continue to operate as a separate business with its own management team and will be headquartered in London.

Depop was created in 2011 in the United Kingdom. Using the service, users can sell and buy used clothing. It now has about 30 million users in 150 countries. By successfully promoting itself on social networks and positioning itself as a service with a focus on ethical and sustainable consumption, Depop has become popular with Generation Z (90% of app users are under 26 years old).

Etsy was founded in 2005 and its stock has doubled over the past year amid a pandemic increase in the popularity of online shopping. The platform has over 90 million active buyers and 4.5 million sellers. The company's revenue in 2020 grew 111% to $1.7 billion, and its net profit increased 264% to $350 million. With the purchase of Depop, Etsy wants to expand its user base to include young people.

source: ft.com




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