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A DJ performs on the launch of social purchasing app Depop’s 3-month pop-up at Selfridges on August 01, 2019 in London, England.
David M. Benett | Getty Pictures
E-commerce agency Etsy introduced Wednesday that it’s shopping for the secondhand trend app Depop for $1.62 billion.
Based within the U.Okay. in 2011, Depop lets individuals purchase and promote used garments via its on-line market. The corporate has attracted a predominantly youthful viewers because of its social media savvy and messaging on environmental and moral purchasing.
Depop boasts roughly 30 million registered customers throughout 150 international locations. Etsy CEO Josh Silverman stated the corporate was “thrilled” to be including what it believes to be the “resale house for Gen Z shoppers” to Etsy.
“Depop is a vibrant, two-sided market with a passionate neighborhood, a highly-differentiated providing of distinctive gadgets, and we consider vital potential to additional scale,” Silverman stated in a press release Wednesday.
“We see vital alternatives for shared experience and development synergies throughout what’s going to now be an incredible ‘home of manufacturers’ portfolio of individually distinct, and really particular, ecommerce manufacturers.”
Depop’s CEO Maria Raga stated in a press release that Depop is “the place the following era involves discover distinctive trend and be a part of a neighborhood that is altering the way in which we store.”
She added:” Our neighborhood is made up of people who find themselves creating a brand new trend system by establishing new tendencies and making new from previous. They arrive to Depop for the garments, however keep for the tradition.”
Etsy stated the transaction consisted primarily of money and was “topic to sure changes for Depop’s working capital, transaction bills, money and indebtedness, and sure deferred and unvested fairness for Depop administration and staff.”
Etsy expects to finalize the deal by the third quarter of 2021. Depop will stay headquartered in London, Etsy stated, working as a standalone enterprise run by present administration.
The deal marks the largest acquisition but for Etsy, which went public on the New York Inventory Trade in 2015.
Shares of Etsy have roughly doubled within the final 12 months because of an e-commerce growth ensuing from the coronavirus pandemic. The inventory is down 5% year-to-date, nevertheless. Etsy shares have been down marginally in U.S. premarket buying and selling.
Previous to agreeing a sale to Etsy, Depop had raised a complete of $105.6 million from traders together with Common Atlantic, Creandum, Balderton Capital, Octopus Ventures and Klarna CEO and co-founder Sebastian Siemiatkowski, in line with information from Crunchbase.
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