Etsy has announced the sale of Depop, a popular secondhand clothing app, to eBay for $1.2 billion in cash, marking a significant move in the secondhand clothing tech market. This deal comes nearly five years after Etsy acquired Depop for $1.62 billion, reflecting a shift in focus for both companies.
Depop, founded in 2011, has been a key player in the secondhand clothing space, particularly appealing to Gen Z and millennials. With approximately $1 billion in gross merchandise sales in 2025 and significant year-over-year growth in the U.S., Depop boasts a strong user base of seven million active buyers, predominantly under 34, and over three million active sellers.
eBay CEO Jamie Iannone expressed confidence in Depop’s future within eBay, highlighting the brand’s momentum and community-driven approach. The move allows Etsy to concentrate on its core marketplace amid increasing competition in the e-commerce landscape.
As Etsy navigates post-pandemic challenges and aims for sustained growth, the sale of Depop underscores a strategic decision to optimize resources and capitalize on market opportunities. Etsy CEO Kruti Patel Goyal emphasized the unique value Depop brings to the fashion resale market, positioning it for continued success under eBay’s ownership.
Source: TechCrunch