Depop has been bought to eBay for $1.2bn, marking a 25 per cent low cost to the value paid 5 years in the past by Etsy.
Etsy acquired the London-founded second-hand style platform for $1.6bn in 2021 on the top of pandemic-era ecommerce development. The resale comes as Etsy refocuses on its core handmade and classic market.
Based in 2011 by English-Italian entrepreneur Simon Beckerman, Depop constructed a powerful following amongst youthful customers looking for sustainable and reasonably priced style. The platform counted roughly seven million energetic consumers on the finish of final yr, almost 90 per cent of whom had been underneath 34.
For eBay, the deal represents an try to deepen its attraction with Gen Z buyers and strengthen its place within the fast-growing resale phase. Trend accounts for greater than $10bn of eBay’s annual gross merchandise volumes, with second-hand clothes a key driver of development.
Jamie Iannone, chief govt of eBay, mentioned Depop would profit from the group’s scale and operational capabilities. “We’re assured that as a part of eBay, Depop shall be properly positioned for long-term development,” he mentioned.
Nevertheless, analysts recommend the acquisition is partly defensive. Aliyah Siddika of GlobalData described the transaction as “as a lot about defence as development”, noting Depop faces intense competitors from rivals reminiscent of Vinted.
Etsy shares rose almost 10 per cent after the announcement, reflecting investor help for the choice to exit a enterprise that has delivered decrease profitability than its core operations. Main shareholders in Etsy embrace BlackRock, Goldman Sachs and activist investor Elliott.
Depop is anticipated to retain its model and function with a level of autonomy underneath eBay’s possession, topic to regulatory approval. The all-cash transaction is scheduled to shut within the second quarter of 2026.
Peter Semple, Depop’s chief govt, mentioned the deal marked a brand new chapter. “This transaction is a testomony to the expansion we have now delivered and the power of our model and neighborhood,” he mentioned.
The sale underscores the shifting valuations inside ecommerce, as pandemic-era premiums give method to a extra measured method to development and profitability.
