Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B

Source: TechCrunch

Overview

Etsy is selling Depop, a second‑hand clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash, as announced in a press release on Wednesday. The transaction will allow Etsy to focus on its own marketplace.

Background

• Etsy acquired Depop in 2021 for $1.62 billion (TechCrunch).
• Depop was founded in 2011 and has become a leading platform for pre‑loved fashion.

Financial Details

• In 2025, Depop generated approximately $1 billion in gross merchandise sales (the total value of goods sold through its platform).
• U.S. sales grew nearly 60 % year‑over‑year.
• As of December 31, 2025, the marketplace had 7 million active buyers (≈90 % under age 34) and over 3 million active sellers.

Executive Statements

“Depop has built a trusted, social‑forward marketplace with strong momentum in the pre‑loved fashion category, and we are confident that as part of eBay, Depop will be even more well‑positioned for long‑term growth, benefiting from our scale, complementary offerings, and operational capabilities,” — Jamie Iannone, eBay CEO, press release.

“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” — Kruti Patel Goyal, Etsy CEO, press release.
“We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest‑growing fashion resale marketplaces in the U.S. I am confident that Depop is well‑positioned for its next phase of growth as part of eBay.”

Market Context

Etsy’s growth has slowed since the pandemic‑era e‑commerce boom, with competition from marketplaces such as Temu, Shein, and Amazon.

• Etsy’s year‑over‑year revenue grew 2.2 % in 2024, down from 7.1 % growth in 2023.
• Etsy is scheduled to release its 2025 earnings on Thursday.

Deal Timeline

• The sale is expected to close in the second quarter of 2026.

Related Activity

Etsy’s recent strategy includes acquiring and later divesting niche online marketplaces, such as Brazil’s Elo7 and the musical‑instrument platform Reverb.