eBay has finalized the acquisition of Depop, a popular second-hand clothing app, from Etsy for $1.2 billion (£890 million). This strategic move by eBay is aimed at attracting a younger audience, with the deal 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 surge in demand from Gen Z and Millennial consumers for sustainable fashion and pre-owned items has significantly boosted Depop’s growth.
As of the end of last year, Depop boasted seven million active buyers, predominantly under the age of 34, with nearly 90% of its user base falling within this demographic. The app has experienced a substantial sales increase of almost 60% in the US over the past year.
Jamie Ianonne, eBay’s CEO, expressed confidence in the acquisition, stating that integrating Depop into eBay’s ecosystem will enhance the platform’s position for long-term expansion. Fashion is a key driver for eBay’s consumer-to-consumer (C2C) segment, generating over $10 billion in annual gross merchandise volume (GMV) and showing a 10% year-over-year GMV growth in the US in 2025.
Kruti Patel Goyal, CEO of Etsy, emphasized Etsy’s focus on growing its marketplace following the sale of Depop to eBay. Goyal believes the transaction benefits Etsy’s shareholders and allows the company to concentrate on enhancing the Etsy platform for its users.
Peter Semple, Depop’s CEO, expressed enthusiasm about the partnership with eBay, highlighting the potential for accelerated marketplace growth in the US and beyond. Semple stressed the shared vision of a sustainable future and the positive impact of their collaborative efforts.
The acquisition marks a significant milestone for Depop, recognizing the brand’s rapid growth and strong community support. This move is set to propel Depop’s marketplace to new heights in the evolving fashion resale landscape.