In a multi-billion-dollar agreement, e-commerce giant Etsy will acquire peer-to-peer social shopping application Depop. The deal will see Etsy, the two-sided online marketplace with millions of buyers and sellers from around the world, acquire 100 percent of Depop’s share capital in exchange for $1.625 billion. The transaction is expected to close during the third quarter of 2021.

“We’re on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop,” said Depop CEO Maria Raga. “Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes but stay for the culture. We’ll now take an exciting leap forward as part of the Etsy family, benefiting from [Etsy CEO] Josh’s and his team’s expertise and the resources of a much larger company whose values are so aligned with ours here at Depop.”

Founded in 2011, Depop will continue to be headquartered in London as a standalone marketplace with the same brand, same app and same team that is currently in place. This means there will be no immediate or significant changes for users of either platform.

In a presentation prepared for investors, Etsy outlined several reasons how and why the acquisition of Depop will be a positive thing for the company. Depop is similar in its peer-to-peer marketplace approach and will extend Etsy’s market opportunity, especially in the fast-growing resale sector and secondhand market—which is projected to grow at a 39 percent CAGR between 2019 and 2024 in the United States—along with adding the Gen Z user base Depop commands.

“We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family,” said Etsy, Inc., CEO Josh Silverman. “Depop is a vibrant, two-sided marketplace with a passionate community, a highly differentiated offering of unique items and we believe significant potential to further scale. Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy’s DNA and mission of ‘keeping commerce human.’ We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct and very special e-commerce brands.”

According to Depop’s website, the app boasts over 26 million registered users in more than 147 countries with 90 percent of those active users being under the age of 26. The Depop community has made more than $1 billion to date, and more than 140,000 new listings are posted every day with vintage, streetwear and one-of-a-kind pieces among the biggest categories.

Etsy, founded in 2005, has millions of users visit its website every year for goods including jewelry, clothing, furniture and vintage items. The company’s mission is to empower people and business owners. Etsy, Inc., will now operate three different e-commerce brands including Etsy, Reverb and Depop.

“This summer marks exactly 10 years since Depop was founded, and I’m delighted to see it mark this anniversary by beginning an exciting new chapter,” said Depop founder Simon Beckerman. “What Depop offers—easy access to unique fashion and a vibrant creative community—is truly distinctive. It’s all about the power of genuine human connection. And it is the people themselves that make being part of the business such a great experience. I’m so proud of our community and our team, and I can’t wait to see what the next decade will bring.”

All images courtesy of Depop.