Depop joins Etsy in a $1.63B acquisition

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Etsy, which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, has signed a definitive agreement to acquire Depop for $1.625 billion.

Following the closing of the transaction, Depop will continue to be headquartered in London, England and operate as a standalone marketplace run by its existing leadership team.

Founded in 2011, Depop is a community-powered marketplace to buy and sell unique fashion, with a mission to build the world’s most diverse and progressive home of fashion.

Balderton first invested as part of Depop’s seed round in 2012, just as the app was being tested in the Italian market. At the time Balderton didn’t do many seed-stage investments, but our investment committee had such conviction in the concept and the founding team that we made a rare exception.

Depop is a truly exceptional company. It’s a shining example of how great businesses can succeed by obsessively focussing on their community, of how generational shifts create new opportunities in previously competitive categories, and on how having a truly values-driven brand is worth more than any amount of performance marketing.

Depop’s CEO Maria Raga

Maria Raga speaks at the Balderton Collective CEO Retreat, 2018

Starting first in the U.K. and moving into the U.S. and Australia, Depop now has a community of approximately 30 million registered users across nearly 150 countries. With 4 million active buyers and had 2 million active sellers in 2020.

Depop’s 2020 gross merchandise sales (GMS) and revenue were approximately $650 million and $70 million, respectively, each increasing over 100% year-over-year. Depop’s GMS grew at a compounded annual growth rate of nearly 80% from 2017-2020.

The second-hand market is also projected to grow at a 39% CAGR from 2019-2024 in the United States, reaching $64 billion, and to grow to twice the size of fast fashion on a global basis.

We're hugely excited for the future of Depop, and would like to thank Maria and her team, and many other investors especially Roberto Bonanzinga and Mark Evans for all their work with the company.