Etsy Wraps Finishes Marketplace Depop Acquisition

Etsy has closed on its purchase of fashion marketplace Depop for roughly US$1.625 billion. The purchase price consists of mainly cash and is “subject to certain adjustments,” according to a Tuesday, July 13, announcement. Depop will keep running as a standalone marketplace operated by its current management team, the release stated.

“With the closing of this incredibly exciting transaction, Etsy’s ‘house of brands’ portfolio now includes four individually distinct, and very special, ecommerce brands – Etsy, Depop, Reverb and Elo7 – with parallel growth strategies, all sharing similar missions, visions, and values,” Etsy CEO Josh Silverman said in the announcement.

In previously revealing its purchase of the decade-old UK-based resale marketplace Depop, Etsy stated it endeavors to grow its reach into the quickly expanding resale sector, while also gaining access to a new market of young, hip consumers, 90% of whom are younger than 26.

“We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family,” Silverman said in a June announcement, noting the cultural fit and purpose-driven DNA the two firms share. “We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, eCommerce brands.”

Etsy, which is based in Brooklyn, New York, was established in 2005, according to the announcement.

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