Depop sold to eBay at 25% discount to 2021 valuation

Depop has been sold to eBay for $1.2bn, marking a 25 per cent discount to the price paid five years ago by Etsy.

Etsy acquired the London-founded second-hand fashion platform for $1.6bn in 2021 at the height of pandemic-era ecommerce growth. The resale comes as Etsy refocuses on its core handmade and vintage marketplace.

Founded in 2011 by English-Italian entrepreneur Simon Beckerman, Depop built a strong following among younger consumers seeking sustainable and affordable fashion. The platform counted roughly seven million active buyers at the end of last year, nearly 90 per cent of whom were under 34.

For eBay, the deal represents an attempt to deepen its appeal with Gen Z shoppers and strengthen its position in the fast-growing resale segment. Fashion accounts for more than $10bn of eBay’s annual gross merchandise volumes, with second-hand clothing a key driver of growth.

Jamie Iannone, chief executive of eBay, said Depop would benefit from the group’s scale and operational capabilities. “We are confident that as part of eBay, Depop will be well positioned for long-term growth,” he said.

However, analysts suggest the acquisition is partly defensive. Aliyah Siddika of GlobalData described the transaction as “as much about defence as growth”, noting Depop faces intense competition from rivals such as Vinted.

Etsy shares rose nearly 10 per cent after the announcement, reflecting investor support for the decision to exit a business that has delivered lower profitability than its core operations. Major shareholders in Etsy 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 ownership, subject to regulatory approval. The all-cash transaction is scheduled to close in the second quarter of 2026.

Peter Semple, Depop’s chief executive, said the deal marked a new chapter. “This transaction is a testament to the growth we have delivered and the strength of our brand and community,” he said.

The sale underscores the shifting valuations within ecommerce, as pandemic-era premiums give way to a more measured approach to growth and profitability.