A DJ performs on the launch of social purchasing app Depop’s 3-month pop-up at Selfridges on August 01, 2019 in London, England.
David M. Benett | Getty Photographs
E-commerce agency Etsy introduced Wednesday that it’s shopping for the second-hand trend app Depop for $1.62 billion.
Based within the U.Okay. in 2011, Depop lets individuals purchase and promote used garments by its on-line market. The corporate has attracted a predominantly youthful viewers because of its social media savvy and messaging on environmental and moral purchasing.
Depop boasts roughly 30 million registered customers throughout 150 nations. Etsy CEO Josh Silverman stated the corporate was “thrilled” to be including what it believes to be the “resale dwelling for Gen Z shoppers” to Etsy.
“Depop is a vibrant, two-sided market with a passionate neighborhood, a highly-differentiated providing of distinctive objects, and we imagine important potential to additional scale,” Silverman stated in a press release Wednesday.
“We see important alternatives for shared experience and development synergies throughout what’s going to now be an amazing ‘home of manufacturers’ portfolio of individually distinct, and really particular, ecommerce manufacturers.”
Depop’s CEO Maria Raga stated in a press release that Depop is “the place the following technology involves discover distinctive trend and be a part of a neighborhood that is altering the best way we store.”
She added:” Our neighborhood is made up of people who find themselves creating a brand new trend system by establishing new developments and making new from outdated. They arrive to Depop for the garments, however keep for the tradition.”
Etsy stated the transaction consisted primarily of money and was “topic to sure changes for Depop’s working capital, transaction bills, money and indebtedness, and sure deferred and unvested fairness for Depop administration and workers.”
Etsy expects to finalize the deal by the third quarter of 2021. Depop will stay headquartered in London, Etsy stated, working as a standalone enterprise run by present administration.
The deal marks the most important acquisition but for Etsy, which went public on the New York Inventory Change in 2015.
Shares of Etsy have roughly doubled within the final 12 months because of an e-commerce growth ensuing from the coronavirus pandemic. The inventory is down 5% year-to-date, nevertheless. Etsy shares had been down marginally in U.S. premarket buying and selling.
Previous to agreeing a sale to Etsy, Depop had raised a complete of $105.6 million from traders together with Basic Atlantic, Creandum, Balderton Capital, Octopus Ventures and Klarna CEO and co-founder Sebastian Siemiatkowski, based on knowledge from Crunchbase.