E-commerce company Etsy announced Wednesday that it is buying the secondhand style application Depop for $1.62 billion.
Launched in the U.K. in 2011, Depop lets people get and market applied clothes by means of its online marketplace. The corporation has captivated a predominantly younger viewers many thanks to its social media savvy and messaging on environmental and moral searching.
Etsy CEO Josh Silverman mentioned the business was “thrilled” to be adding what it believes to be the “resale household for Gen Z consumers” to Etsy. Depop offers close to 30 million registered consumers across 150 international locations.
“Depop is a vibrant, two-sided market with a passionate community, a very-differentiated giving of exclusive items, and we consider sizeable likely to more scale,” Silverman explained in a assertion Wednesday.
A DJ performs at the start of social buying app Depop’s 3-month pop-up at Selfridges on August 01, 2019 in London, England.
David M. Benett | Getty Images
“We see major options for shared abilities and advancement synergies throughout what will now be a huge ‘house of brands’ portfolio of separately distinctive, and quite distinctive, ecommerce models.”
Depop’s CEO Maria Raga said in a assertion that Depop is “where by the subsequent era arrives to check out special manner and be part of a neighborhood that is modifying the way we store.”
She included: “Our group is produced up of persons who are creating a new trend process by creating new tendencies and making new from old. They occur to Depop for the clothing, but stay for the culture.”
Etsy mentioned the transaction consisted mostly of income and was “matter to specific changes for Depop’s operating funds, transaction costs, hard cash and indebtedness, and sure deferred and unvested equity for Depop administration and staff.”
Etsy expects to finalize the offer by the 3rd quarter of 2021. Depop will keep on being headquartered in London, Etsy explained, working as a standalone company run by current administration.
The deal marks the most important acquisition nonetheless for Etsy, which went community on the New York Stock Trade in 2015.
Shares of Etsy have extra than doubled in the previous 12 months thanks to an e-commerce increase resulting from the coronavirus pandemic. The stock was up about 6.7% Wednesday afternoon.
Prior to agreeing a sale to Etsy, Depop experienced raised a total of $105.6 million from investors which includes Normal Atlantic, Creandum, Balderton Cash, Octopus Ventures and Klarna CEO and co-founder Sebastian Siemiatkowski, in accordance to data from Crunchbase.