Etsy to buy fashion reseller Depop for $1.63 billion in Gen-Z push

Bengaluru: Etsy Inc. said on Wednesday it would acquire Gen-Z focused fashion reseller Depop for

Bengaluru: Etsy Inc. said on Wednesday it would acquire Gen-Z focused fashion reseller Depop for $1.63 billion, as the online seller looks to attract younger shoppers.

Young consumers are increasingly moving towards second-hand fashion, conscious of the environment and carbon footprint of the clothing industry. Between 2019 and 2024, the second-hand clothing market in the US is projected to grow at a compounded annual growth rate (CAGR) of 39% to $64 billion. Globally, the industry would outpace fast fashion twice over in the same time period, Etsy said.

Depop, an online marketplace to buy and sell new or second-hand apparel, mainly has users in the under-26 age bracket. It is the 10th most visited shopping site among Gen-Z consumers in the US, Etsy said. The deal, which Etsy said would be funded via available liquidity, is expected to close during the third quarter of 2021.