Jun 2, 2021 - Economy

Etsy to buy resale app Depop for $1.6 billion in cash

illustration of a broken zipper

Illustration: Sarah Grillo/Axios

Etsy agreed to buy Depop, a London-based secondhand fashion marketplace, for $1.63 billion in cash.

Why it matters: This is millennial-driven Etsy trying to get younger, as around 90% of Depop's users are under 26 years old.

ROI: Depop raised around $100 million in VC funding, most recently in 2019 at a $240 million post-money valuation. Backers include General Atlantic, Balderton Capital, Creandum, Octopus Ventures and TempoCap.

The bottom line: "Depop, founded in 2011, shares Etsy’s love of secondhand clothing. But while Etsy’s brand leans more towards the vintage and cosy, Depop’s is more fashionable," The Verge writes.

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