Handmade and vintage selling platform Etsy today (June 2, 2021) announced it will acquire London-based shopping app Depop for $1.6 billion. Signaling the synergy of the deal, Etsy CEO Josh Silverman commented, “We are simply thrilled to be adding Depop, what we believe to be the resale home for Gen Z consumers, to the Etsy family.”
Depop was founded by Simon Beckerman in 2011. According to CEO Maria Raga, the site in 2019 boasted more than 15 million registered users, of whom 90% were 26 or under. Commenting on the deal on Instagram, Raga wrote, “It’s a huge step forward that will help us serve our community better than ever, continue to grow our ecosystem, and advance our mission to build the world’s most diverse and progressive home of fashion.”
The deal reflects the growing importance of the resale market across an array of age groups, from Gen Z consumers reselling sneakers or items they’ve thrifted to Millennials unloading their luxury goods. According to Statista, the secondhand shoe and apparel market in 2021 accounted for close to $40 billion is sales with estimates it will reach $60 billion in sales by 2024.