Etsy is promoting Depop, a secondhand clothes app well-liked with Gen Z and millennials, to eBay for $1.2 billion in money, the corporate announced on Wednesday. Etsy says the deal will permit it to focus by itself market.
The deal comes practically 5 years after Etsy acquired Depop for $1.62 billion, at a time when secondhand clothes apps have been gaining in popularity.
Based in 2011, Depop generated roughly $1 billion in gross merchandise gross sales — the full worth of products bought by way of its platform — in 2025. Within the U.S., the corporate noticed practically 60% year-over-year development. As of December 31, 2025, {the marketplace} had seven million energetic patrons, practically 90% of whom have been beneath 34, and greater than three million energetic sellers.
“Depop has constructed a trusted, social-forward market with sturdy momentum within the pre-loved trend class, and we’re assured that as a part of eBay, Depop will likely be much more well-positioned for long-term development, benefiting from our scale, complementary choices, and operational capabilities,” stated eBay CEO Jamie Iannone within the press release.
The transfer comes as Etsy has struggled to develop its enterprise after the pandemic-era e-commerce increase, competing with marketplaces like Temu and Shein, in addition to Amazon.
The corporate’s year-over-year income grew 2.2% in 2024, down from 7.1% development reported in 2023. Etsy is scheduled to launch its 2025 earnings on Thursday.
“We’re excited that this transaction permits us to focus solely on the compelling alternative we see in entrance of us: to develop the Etsy market in ways in which matter most to our patrons and sellers,” stated Etsy CEO Kruti Patel Goyal within the press launch. “We’re pleased with what the Depop staff has constructed – a really differentiated model and product, grounded in clear objective and powerful group – changing into one of many fastest-growing trend resale marketplaces within the U.S. I’m assured that Depop is well-positioned for its subsequent section of development as a part of eBay.”
Techcrunch occasion
Boston, MA
|
June 23, 2026
The sale is the newest in a sample of Etsy buying after which divesting area of interest on-line marketplaces. Etsy’s sale of Depop comes as the corporate has bought after which bought different area of interest on-line marketplaces in recent times, together with Brazilian e-commerce firm Elo7 and musical instrument market Reverb.
The deal is predicted to shut within the second quarter of this 12 months.
