Etsy is buying the fashion reselling app Depop for $ 1.62 billion

Josh Silverman, CEO of Etsy.

Adam Jeffery | CNBC

E-commerce firm Etsy announced Wednesday that it will purchase second-hand fashion market app Depop for $ 1.62 billion as part of an effort to reach a younger audience.

Founded in the UK in 2011, Depop now claims to have approximately 30 million registered users in 150 countries. The online marketplace gives people the ability to sell their used clothing and other items similar to apps like Gumtree and Shpock.

Etsy CEO Josh Silverman said in a statement that the company is “delighted” to add what it believes is the “resale home for Gen Z consumers” to Etsy.

“Depop is a vibrant two-sided marketplace with a passionate community, a highly differentiated offering of unique items, and we believe there is significant potential to scale even further,” he said.

“Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving authentic, organic growth in a way that aligns well with Etsy’s DNA and mission of sustaining human commerce. We see significant opportunities to share knowledge and synergies for growth in what will now be a huge ‘house of brands’ portfolio of individually distinct and very special e-commerce brands. “

Depop CEO Maria Raga said in a statement that Depop is “the place where the next generation comes to explore unique fashion and be part of a community that is changing the way we shop.”

She added: “Our community is made up of people who are creating a new fashion system by setting new trends and making new out of old. They come to Depop for the clothes, but they stay for the culture. We will now take an exciting leap forward as part of the Etsy family, benefiting from the expertise of Josh and his team, and the resources of a much larger company whose values ​​are so aligned with ours here at Depop. “

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