Etsy (NASDAQ: ETSY) revealed Wednesday that it is set to buy social shopping app Depop for a total of USD1.62 Billion. The e-commerce company intends to attract young shoppers as well as establish itself within the vintage or used clothing market.
Depop, a peer-to-peer shopping platform, was established in 2011 in the U.K. and is used by people to buy and sell clothing through its marketplace. The app is primarily handled by a younger crowd due to its social media presence and has about 30 million active users within 150 countries.
According to Etsy CEO Josh Silverman, he views Depop as the “resale home for Gen Z consumers” to Etsy.
“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,” Silverman said in a statement Wednesday.
“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.”
Amid the resale boom, several retailers such as Gap and Vera Bradley have chosen to partner with street market apps such as Poshmark and ThredUp.
Meanwhile, Depop’s CEO Maria Raga expressed that Depop is “where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop.”
She Continued on to say: “Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes, but stay for the culture.”
Etsy anticipates finalizing the deal before the third quarter of 2021. Furthermore, the company said that Depop will remain headquartered in London and will operate as a standalone business led by its existing management.