Esty completes acquisition of Depop for $1.625 billion

Today, Esty announced that it has completed the previously announced acquisition of Depop for $1.625 billion , and will only make partial adjustments to Depop. Just in June, Esty just completed the acquisition of Elo7. Depop is both a fashion shopping platform and a community-driven market where users can share the products they buy, and the audience is mainly young people. Depop's community function is very popular with buyers and has played a big role in the indirect promotion of the platform. In 2015, 2018, and 2019, Depop completed financing of 8 million, 20 million, and 62 million US dollars respectively.

This acquisition further expands Etty's market into the high-frequency clothing sector, especially in the fast-growing resale space. According to statistics, Depop's sales in 2020 were approximately US$650 million, and its revenue reached US$70 million, an increase of more than 100% year-on-year. From 2017 to 2020, its GMS achieved a compound annual growth rate of nearly 80%.

Although it has acquired Depop, Esty said it will not change the independent market operation of its existing team, but will only add Esty's differentiated brand. Depop can continue to maintain its independent operation and obtain more resources through Esty's advantages. Esty said it will focus on developing its market and is committed to providing users with a better shopping experience.

At the same time, this acquisition also means that Esty’s “Brand House” portfolio now has four independent and distinctive e-commerce brands, namely Esty (featuring handmade finished products), Depop (fashion shopping platform), Reverb (selling musical instruments, accessories, etc.) and Elo7 (a privately held unique handmade product platform). Each brand has similarities in corporate philosophy, but the four brands each implement their own proprietary strategies.

Esty executives welcomed the addition of Depop, believing that Depop's unique products and highly engaged user base will drive a larger consumer group, and expressed confidence that Depop will become the resale home for Generation Z consumers.

Esty

Depop

Acquisition