Ebay hits buy it now to snatch Depop from Etsy in £890,000,000 bid

Ebay is looking to buy the second-hand fashion app Depop from its rival Etsy in a bid to attract younger shoppers.

The online retail giant has ironed out a purchase deal worth $1.2 billion (£890 million) to get Depop.

Depop, Vinted and other second-hand clothing platforms have surged in popularity in recent years as customers, especially Gen Z shoppers, choose sustainable options over new fast fashion.

Etsy, known for its unique and personalised goods and crafts sold online by makers, wants to sell Depop five years after it acquired it for $1.62 billion.

With the move, Ebay aims to cater to a ‘younger demographic’ as part of its long-term growth strategy.

Depop has amassed around seven million buyers since its launch, and almost 90% of them are under 34.

The sale is expected to close in the second quarter of this year, meaning by the end of March.

Despite the sale, things are expected to remain business as usual at Depop – the companies said it will retain its name, brand, platform and culture.

Ebay’s chief executive, Jamie Ianonne, said: ‘Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities.

‘We’re excited to welcome the Depop team to eBay, and look forward to building on what makes them unique – their brand, culture and community – to deliver compelling benefits to buyers and sellers.’

Depop hails from London, where it was founded in 2011.

Peter Semple, chief executive of Depop, said: ‘We’re thrilled to begin this next chapter with eBay, whose experience in the C2C (consumer-to-consumer) fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the US and beyond.

‘This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world.’

Etsy’s chief, Kruti Patel Goyal, said the transaction will allow Etsy to grow ‘in ways that matter the most to our buyers and sellers.’

Get in touch with our news team by emailing us at webnews@usnewsrank.com.

For more stories like this, check our news page.