Etsy, Inc. (NASDAQ: ETSY), a Brooklyn, N.Y.-based company which operates online marketplaces that connect creative buyers and sellers around the world, is to acquire Depop, a London, England, UK-based marketplace for fashion for $1.625 billion.
With the acquisition, Depop will grow Etsy’s gross merchandise sales (GMS) in the apparel sector, which was ~$1 billion in 2020. Following the closing of the deal, currently anticipated to occur during the third quarter of 2021, Depop will continue to be headquartered in London, England and operate as a standalone marketplace run by its existing leadership team.
Led by Josh Silverman, CEO, Etsy operates online marketplaces including its primary marketplace, Etsy.com, a global destination for unique and creative goods. Reverb, a global online marketplace dedicated to buying and selling new, used, and vintage musical instruments, and now Depop.
Founded in 2011 by Simon Beckerman in 2011 and led by CEO Maria Raga, Depop is a community-powered marketplace to buy and sell vintage, streetwear, one-of-a-kind and Y2K (late 1990s/early 2000s) fashion. Starting first in the U.K. and moving into the U.S. and Australia, the company now has a community of approximately 30 million registered users across nearly 150 countries. Depop’s 2020 gross merchandise sales (GMS) and revenue were approximately $650m and $70m, respectively, each increasing over 100% year-over-year.
The company has offices in Manchester, New York, Los Angeles and Sydney.