Depop was sold to eBay for $1.2 billion, a 25 percent discount from the price Etsy paid five years ago.
Etsy acquired the London-founded second-hand fashion platform for $1.6 billion in 2021, at the height of pandemic-era e-commerce growth. The resale comes at a time when Etsy is refocusing on its core handmade and vintage market.
Founded in 2011 by Anglo-Italian entrepreneur Simon Beckerman, Depop has built a strong following among younger consumers seeking sustainable and affordable fashion. At the end of last year, the platform had around seven million active buyers, almost 90 percent of whom were under 34 years old.
For eBay, the deal represents an attempt to broaden its appeal to Gen Z shoppers and strengthen its position in the fast-growing resale segment. Fashion accounts for more than $10 billion of eBay’s annual gross merchandise volume, with second-hand clothing a key growth driver.
Jamie Iannone, eBay’s chief executive, said Depop would benefit from the group’s size and operational capabilities. “We are confident that Depop will be well positioned for long-term growth as part of eBay,” he said.
However, analysts believe the takeover is partly defensive. GlobalData’s Aliyah Siddika described the deal as “as much about defense as it is about growth,” noting that Depop faces stiff competition from rivals such as Vinted.
Etsy shares rose nearly 10 percent after the announcement, reflecting investor support for the decision to exit a company that has delivered lower profitability than its core business. Etsy’s major shareholders include BlackRock, Goldman Sachs and activist investor Elliott.
Depop is expected to retain its brand and operate with a degree of autonomy under eBay’s leadership, subject to regulatory approval. The cash transaction is expected to close in the second quarter of 2026.
Depop CEO Peter Semple said the deal marks a new chapter. “This transaction is a testament to the growth we have achieved and the strength of our brand and community,” he said.
The sale underscores changing valuations in e-commerce as pandemic-era premiums give way to a more measured approach to growth and profitability.
