eBay has finalized the acquisition of Depop, a popular second-hand clothing app, from its competitor Etsy for $1.2 billion (£890 million). This strategic move by eBay aims to attract a younger audience and is expected to be completed in the second quarter of this year.
Founded in London in 2011, Depop will maintain its name, brand, and platform under eBay’s ownership. The purchase comes after Etsy acquired Depop for $1.62 billion (£1.2 billion) five years ago.
With the increasing interest in sustainable fashion among Gen Z and Millennial consumers, Depop’s popularity has surged. The platform boasted seven million active buyers at the end of the previous year, with nearly 90% of them under the age of 34. Notably, Depop’s sales in the US have grown by almost 60% over the past year.
In a statement, eBay’s CEO, Jamie Ianonne, expressed confidence in Depop’s potential for long-term growth within eBay’s ecosystem. Fashion is a significant consumer-to-consumer (C2C) driver for eBay, accounting for over $10 billion in annual gross merchandise volume (GMV) and registering a 10% year-over-year GMV increase in the US in 2025.
Kruti Patel Goyal, CEO of Etsy, emphasized the positive outcome of the transaction, enabling Etsy to focus on enhancing its marketplace for buyers and sellers. She praised Depop’s unique brand and strong community, predicting a successful future for Depop as part of eBay.
Peter Semple, Depop’s CEO, expressed excitement about the partnership with eBay and the potential for accelerated growth in the US and beyond. He highlighted the progress Depop has made in product development and brand recognition, positioning it for further expansion.
The acquisition of Depop by eBay signifies a significant move in the fashion resale market, reflecting the evolving consumer trends towards sustainability and second-hand shopping.