eBay said the deal will help it appeal to a ‘younger demographic’ and expects the transaction to close in the second quarter of this year
eBay has agreed to buy second-hand clothing app Depop from rival Etsy for $1.2billion (£890million).
eBay said the deal will help it appeal to a “younger demographic” and expects the transaction to close in the second quarter of this year.
Depop, which was founded in London in 2011, is expected to retain its name, brand and platform. The deal comes five years after Etsy bought Depop for $1.62billion (£1.2 billion).
The business has seen its popularity rise on the back of growing demand from Gen Z and Millennial shoppers to be more sustainable and buy second-hand.
Depop had seven million active buyers at the end of last year, with almost 90% of these under the age of 34. Its sales in the US have risen almost 60% in the past year.
Jamie Ianonne, chief executive of eBay, 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.
“A key C2C driver, fashion represents more than $10 billion in annual gross merchandise volume (GMV) for eBay and delivered 10% year-over-year GMV growth in the US in 2025.
“This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape.
“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.”
Kruti Patel Goyal, chief executive of Etsy, said: “We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers.
“We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved. We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the US.
“I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
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.”
