Etsy Sells Depop to eBay for $1.2 Billion
Etsy has announced that it is selling Depop, a popular secondhand clothing app among Gen Z and millennials, to eBay for $1.2 billion in cash. This move will allow Etsy to refocus on its own marketplace, following its acquisition of Depop five years ago for $1.62 billion.
The decision to sell Depop comes at a time when secondhand clothing apps are gaining popularity, with Depop generating approximately $1 billion in gross merchandise sales in 2025. The platform experienced nearly 60% year-over-year growth in the U.S., boasting seven million active buyers, the majority of whom are under 34, and over three million active sellers.
According to eBay CEO Jamie Iannone, “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category. As part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities.”
Despite Etsy’s struggles to grow its business post-pandemic, facing competition from marketplaces like Temu, Shein, and Amazon, the company remains optimistic about the future. Etsy CEO Kruti Patel Goyal expressed excitement about focusing exclusively on growing the Etsy marketplace and highlighted the unique brand and product that the Depop team has built.
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Over the years, Etsy has followed a pattern of acquiring and divesting niche online marketplaces, with the sale of Depop being the latest example. This divestment follows Etsy’s previous acquisitions and sales of niche platforms such as Elo7 and Reverb. The deal is expected to close in the second quarter of this year.
