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  /  News   /  Etsy is shopping for the style resale app Depop for $1.6 billion.

Etsy is shopping for the style resale app Depop for $1.6 billion.

Depop, the style resale market beloved by Era Z, is to be acquired by Etsy for $1.6 billion, the 2 corporations introduced on Wednesday.

The money deal, which is anticipated to shut by the third quarter of this yr, underscores the rising affect of clothes resale platforms. Extra consumers are turning to the secondhand marketplace for one thing cheaper and — doubtlessly — greener because the overproduction of clothes more and more provides to landfills.

The development seems to have been accelerated by the pandemic as extra consumers appeared to declutter wardrobes, earn money by promoting their previous garments or arrange vogue customization companies from their bedrooms.

Investor urge for food can also be on the rise. Final month, Europe’s largest secondhand vogue market, Vinted, raised 250 million euros in a funding spherical that valued the start-up at €3.5 billion ($4.26 billion), whereas in the USA corporations akin to ThredUp and Poshmark have gone public this yr.

Depop, which was based in 2011, has been significantly profitable in constructing a market for youthful customers, who’re adopting secondhand vogue quicker than every other group. Ninety % of its customers are below 26, with 30 million customers throughout 150 nations. The platform is especially identified for its classic garments and streetwear — and for creating a brand new cohort of on-line influencers well-known for promoting their wares.

“We’re merely thrilled to be including Depop — what we imagine to be the resale dwelling for Gen Z customers — to the Etsy household,” mentioned the Etsy chief govt, Josh Silverman.

He mentioned he believed the platform had “important potential to additional scale” and mentioned that he noticed “important alternatives for shared experience and development synergies” for Etsy’s attire sector, which was valued at $1 billion final yr.

Based on the Boston Consulting Group, the worldwide pre-owned attire market is value as much as $40 billion a yr — about 2 % of the entire attire market. It’s anticipated to develop 15 to twenty % yearly for the subsequent 5 years.

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