Etsy Wraps Up Purchase Of Fashion Resale Marketplace Depop

Etsy has closed on its purchase of fashion marketplace Depop for roughly $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 U.K.-based resale marketplace Depop, Etsy said it endeavors to grow its reach into the quicky expanding resale sector, while also gaining access to a new market of young, hip consumers, 90 percent 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.

Separately, Etsy announced in June that it will purchase Brazilian handmade marketplace Elo7 for $217 million in cash. Elo7, which Silverman referred to as “the Etsy of Brazil,” has roughly 1.9 million active buyers and 56,000 active sellers, with roughly eight million items available for purchase. Elo7 will still be based in Sāo Paulo, Brazil, and will run as a standalone marketplace operated by its current management.

Elo7 CEO Carlos Curioni, who established the firm in 2008, said Etsy “has always been an inspiration and a reference.”

Etsy also purchased online musical instrument marketplace Reverb back in 2019.