Depop, the second-hand clothing app that has skyrocketed in popularity among Gen Z shoppers, is being sold to eBay for $1.2bn (£890m).
Etsy, the online platform, is offloading Depop just five years after it bought the business – which was founded in the UK – for $1.6bn.
eBay is hoping that the deal will help the online auction firm, which is more than 30 years-old, “reach a younger demographic across the expanding re-commerce landscape”.
Apps that allow people to buy and sell used or “pre-loved” garments and footwear have grown in use in recent years as young consumers seek sustainable, low-cost alternatives to traditional retailers.
The all-cash deal is expected to be completed by the middle of this year and will see Depop retain its name and branding.
It will help boost eBay’s used clothes sales, which is one of eBay’s “fastest-growing” categories, said chief executive officer Jamie Ianonne.
The announcement came as eBay published its 2025 financial results which showed revenues rose to $11.1bn, up 8% compared to a year earlier.
Etsy’s share price rose more than 15% in after-hours trading, while eBay’s was rose by almost 6.5%.
According to Etsy, nearly 90% of Depop’s seven million active buyers are under the age of 34.
The second-hand fashion platform also has more than three million active sellers.
Depop has become “one of the fastest-growing fashion resale marketplaces in the US”, said Kruti Patel Goyal, chief executive of Etsy.
“I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” she added.
Etsy bought Depop in 2021 as part of a series of major purchases as it tried to compete with online retail giants like Amazon.
But Etsy has since pulled back from many of those deals.
In 2023, it sold of Elo7 – often referred to as Brazil’s version of Etsy – at a loss after paying $217m for it two years earlier.
Last year, Etsy said it would sell Reverb, a music equipment resale site that it bought in 2019, in order to prioritise its core business.
The Etsy platform, known for its focus on handcrafted and niche goods, thrived during the Covid-19 pandemic as more people shopped online.
But the firm has struggled in recent years, faced with shrinking demand and tough competition in the crafts market.
Chinese giants like Temu and Shein, which offer cheaper goods and fast delivery, have become increasingly popular.
By BBC News
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