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Etsy buys British Depop fashion app for $ 1.6bn in ‘Gen Z’ push

Etsy finds out Depop, the second fashion app, for $ 1.6bn, because the stock-based market enhances its reputation for young consumers.

The program of system The sale of vintage or recycled clothing online, which Depop helped pioneers a decade ago, has now spawned billions of companies, such as traditional fashion retailers. struggle and an increase in consumer demand for quality and lasting quality.

More than 90% of Depop’s millions of users are under the age of 26, the age group named “Generation Z”, giving Etsy the opportunity to read to less people than her customers. Etsy users live for a thousand years or more, the average age for about 39 sales.

“The mass recovery market is a huge market that we think is in a good position for future growth,” said Etsy CEO Josh Silverman. “We think Gen Z is the most exciting team in the market.”

Investment in Depop from London, which was established in 2011, doubled last year to $ 70m, mainly from retail companies. Its 4m net worth and 2m retailers sell for as much as $ 650m by 2020.

Depop has also forged partnerships with brands including Adidas, Benetton and Ralph Lauren, as fashion retailers look to expand their established reputation.

“We have the same goal and we share the same,” Silverman said. “We all want to be entrepreneurs. We all support creative entrepreneurs.”

The acquisition comes at a time when Nvidia he wants to $ 40bn of arms production in the UK Arm has also sparked controversy over British and European companies being taken over by US rivals. The UK Competition and Markets Authority stepped up its investigation into technical fraud last year.

Silverman said Etsy, who lives in New York, “was really in tune with where all the managers wanted to go” because their expertise helps people and small businesses compete with Amazon.

“We provide a team and a signal to help the Davids compete in a Goliath match out there,” he said.

Depop hopes to leap Etsy’s expertise to promote human security and global development, while Etsy hopes to learn from Depop’s mobile technology and savvy media.

“Most of the challenges we face as a business are things that Etsy has had in the past,” said Maria Raga, Depop’s chief executive. “Etsy has changed a lot in terms of search and discovery, and that’s what we can learn from.”

Etsy pays about $ 1.6bn at Depop, mostly cash. Silverman said the price is “largely consistent with what you see in the market for changing growth in terms of capital gains, and how much money is seen in the ecommerce market right now”.

Depop grew sales faster than its competitors Poshmark and ThredUp last year. The price is relatively low compared to its main competitors in Europe Printed, which was valued at € 3.5bn in securities last month, while Poshmark is trading at a market price of $ 3.5bn.

Vestiaire Collective, which specializes in handmade clothing, was valued at over $ 1bn while the Kering clothing group took a 5% stake earlier this year.

Depop, which will maintain its existing offices by the management team, received approximately $ 100m from fundraisers including General Atlantic, Balderton Capital, Creandum, and Octopus Ventures. According to his annual report at the UK’s Companies House record, Depop revenue grew 55% annually to $ 21.4m in 2019, but pre-tax losses tripled to $ 15.5m.

Shares at Etsy fell by more than 10% last month, warning of a “reopening of the hurricane”, which led to a “slowdown in ecommerce” by the end of this year.

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