Why Etsy thinks fashion resale site Depop is worth $1.6 billion
Etsy has announced it will buy Depop, a UK-based fashion resale marketplace, for $1.63 billion in a primarily cash deal. It’s Etsy’s second acquisition of a resale platform and much bigger than the last one—its $275 million purchase of Reverb, a marketplace for new and used music gear, in 2019.
The company sees Depop as a way to bolster its business in clothing resale and with Gen Z, the generation generally regarded as being born between 1997 and 2012. It also expects to use its expertise in peer-to-peer marketplaces to help Depop grow, Etsy’s management explained on a call with investors and analysts today, and believes it can learn from Depop in return.
The fashion resale market exploded over the past decade as numerous companies launched to sell used clothes online. Some work on a consignment model while others, including Depop, operate as peer-to-peer marketplaces. Globally, the resale market for clothes, footwear, and accessories is now worth between $30 billion and $40 billion, according to Boston Consulting Group, and growing fast.
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