Depop has been offered 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 vogue platform for $1.6bn in 2021 on the top of pandemic-era ecommerce progress. 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 robust following amongst youthful shoppers looking for sustainable and reasonably priced vogue. The platform counted roughly seven million energetic consumers on the finish of final yr, practically 90 per cent of whom have been beneath 34.
For eBay, the deal represents an try and deepen its enchantment with Gen Z buyers and strengthen its place within the fast-growing resale section. Trend accounts for greater than $10bn of eBay’s annual gross merchandise volumes, with second-hand clothes a key driver of progress.
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 can be nicely positioned for long-term progress,” he mentioned.
Nonetheless, analysts counsel the acquisition is partly defensive. Aliyah Siddika of GlobalData described the transaction as “as a lot about defence as progress”, noting Depop faces intense competitors from rivals reminiscent of Vinted.
Etsy shares rose practically 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 beneath 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 now have delivered and the power of our model and group,” he mentioned.
The sale underscores the shifting valuations inside ecommerce, as pandemic-era premiums give option to a extra measured strategy to progress and profitability.
