Connect with us

Hi, what are you looking for?

Technology

Etsy to buy fashion app Depop for $1.6B to cash in on Gen Z shopping habits

Etsy to buy fashion app Depop for $1.6B to cash in on Gen Z shopping habits

iphone-app

Depop is popular among Gen Z shoppers.


Depop

Online marketplace Etsy announced its $1.625 billion acquisition of UK-based fashion resale app Depop on Wednesday, as the company looks to expand its customer base among younger shoppers. Depop is especially popular with people in their teens and early twenties, who use the app to buy and sell clothes. It follows a similar two-sided online marketplace model to Etsy, which is primarily used to buy and sell handmade goods. 

Around 90% of Depop’s active users are under the age of 26, and Etsy will be hoping its acquisition of the company will help it cash in on the spending power of this demographic, which is currently on the rise. While Depop has been around for ten years, it saw accelerated growth in 2020, with its gross merchandise sales and revenue both increasing 100% year over year. 

Younger shoppers are a major force in driving the growth of the secondhand fashion market, which has helped boost Depop to become the tenth most-visited shopping site among Gen Z consumers in the US.

“We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family,” said Etsy CEO Josh Silverman in a statement. “Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale.”

Depop will continue to be based in London, where it is headquartered, and will operate as a standalone marketplace run by its existing leadership team.

“We’re on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop,” said Depop CEO Maria Raga in a statement. “Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old.”

Etsy said it’s hoping to close the sale in the third quarter of 2021, although the deal will first have to be scrutinized by UK regulator the Competition Markets Authority. Following Nvidia’s announcement that it would be acquiring ARM last September, the CMA has escalated its scrutiny of US takeovers of UK tech companies, so the acquisition will likely be subject to examination with a fine tooth comb before getting the green light.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...