Etsy to get second-hand fashion program Depop for 1.6 billion dollars

US online market Etsy is to acquire British second-hand fashion system Depop for 1.6 billion dollars within a Gen Z press.

Etsy, a industry that specialises in handmade and classic things, announced Wednesday it ideas to buy the company primarily in cash since it looks to attract a younger crowd.

About 90 percent of Depop's active users are beneath the age of 26, with the wider resale fashion market, generally, being driven by a younger and extra environmentally conscious consumer.

According to Etsy, the second-hand marketplace is projected to expand at a 39 percent CAGR via 2019-2024 in the US, reaching 64 billion dollars - where point it will be twice the size of fast fashion on a global basis.

Depop bought for 1.6 billion dollars
When the offer is closed, which is expected in the third one fourth of 2021, Depop will still be headquartered in London, England and operate as a standalone market operate by its existing leadership workforce.

“We are simply just thrilled to be adding Depop-what we believe to be the resale home for Gen Z customers - to the Etsy family,” Etsy CEO Josh Silverman said in a affirmation. “Depop is a captivating, two-sided market place with a separate community, a highly-differentiated supplying of unique items, and we believe significant potential to help expand scale.”

Founded in 2011, Depop is a community-driven marketplace particularly favored by Gen-Z consumers who prefer to trade pre-loved clothing and additional products.

The business at first launched in the UK before expanding to Australia. The business has around 30 million new users across nearly 150 countries.

Last year, the London-structured company a lot more than doubled earnings to 70 million dollars, while its gross merchandise revenue (GMS) was around 650 million dollars, representing a compounded gross annual growth charge of almost 80 percent from 2017-2020.