Ebay has struck a €1.1 billion deal to buy second-hand clothing app Depop from rival Etsy.
It is offloading the brand, which has become increasingly popular among Gen Z shoppers looking to buy products sustainably, five years after buying it for €1.3 billion.
Ebay said the deal will help it cater to a “younger demographic” as the online marketplace giant targets long-term growth.
The deal is expected to close in the second quarter of this year.
Depop, which was founded in London in 2011, is expected to retain its name, brand, platform and culture, the companies said.
The business has expanded on the back of growing demand from Gen Z and Millenial shoppers to buy sustainably and avoid old items going into landfill.
At the end of last year, Depop’s marketplace had seven million active buyers, with almost 90% of these under the age of 34.
The business has also benefited from recent rapid growth in the US, with sales in the country rising by almost 60% over the past year.
Jamie Ianonne, chief executive of eBay, said: “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.
“We’re excited to welcome the Depop team to eBay, and look forward to building on what makes them unique – their brand, culture and community – to deliver compelling benefits to buyers and sellers.”
Kruti Patel Goyal, chief executive of Etsy, said: “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.”
Peter Semple, chief executive of Depop, said: “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C (consumer-to-consumer) fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the US and beyond.
“This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world.”