Five Years Later, Depop Finds a New Home (Image Credits: Entrepreneur.com)
eBay Inc. announced on February 18, 2026, an agreement to acquire the popular secondhand clothing app Depop from Etsy Inc. for approximately $1.2 billion in cash.[1]
Five Years Later, Depop Finds a New Home
Etsy acquired Depop in 2021 for more than $1.6 billion, drawn by its potential in the burgeoning resale market.[2] The British app, founded in 2011, quickly gained traction among younger users seeking unique, pre-loved fashion. Now, Etsy decided to divest after integrating it into its portfolio.
The transaction, unanimously approved by both companies’ boards, marks a strategic shift for Etsy. Chief Executive Officer Kruti Patel Goyal stated, “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.”[1] Proceeds will support share repurchases and investments in Etsy’s core handmade goods platform. The deal expects to close in the second quarter of 2026, pending regulatory approvals.[1]
Depop’s Surge Fuels Gen Z Appeal
Depop boasts impressive metrics that underscore its popularity. In 2025, the platform recorded about $1 billion in gross merchandise sales, with nearly 60 percent year-over-year growth in the United States.[1] As of late last year, it had 7 million active buyers – nearly 90 percent under age 34 – and more than 3 million active sellers.[1]
The app’s community-driven model has cultivated a loyal following, emphasizing sustainability and personal style. Its U.S. market has become the largest, reflecting broader trends in circular fashion. Depop Chief Executive Officer Peter Semple noted, “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace.”[1]
eBay Eyes Synergies in Resale Expansion
Fashion already drives significant volume for eBay, exceeding $10 billion in annual gross merchandise value last year with double-digit U.S. growth.[1] The acquisition targets younger demographics to bolster its consumer-to-consumer offerings. eBay Chief Executive Officer Jamie Iannone explained, “A key C2C driver, fashion represents more than $10 billion in annual gross merchandise volume for eBay… This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories.”[1]
- Access to eBay’s shipping solutions and Authenticity Guarantee for Depop users.
- Cross-listing opportunities to boost inventory visibility globally.
- Financial services and tools to enhance seller experiences.
- Preservation of Depop’s brand, platform, and culture post-close.
Analysts view the move positively. GlobalData’s Neil Saunders called it “very accretive to eBay,” providing a growth vector against rivals in secondhand apparel.[2]
Shifting Dynamics in Online Resale
Etsy stock rose more than 14 percent following the news, signaling investor approval of the refocus.[3] This sale follows Etsy’s divestiture of its music marketplace Reverb last year. Meanwhile, eBay anticipates short-term integration costs but projects accretion to operating income within two years.[2]
The deal highlights resale’s maturation, where platforms specialize to capture niche audiences. Depop’s integration could redefine how veterans like eBay engage digital natives.
Key Takeaways
- eBay gains 7 million young buyers and $1B+ GMV from Depop.[1]
- Etsy sharpens focus on core handmade sales after $1.6B Depop investment.
- Resale fashion booms, with synergies poised to drive mutual growth.
This acquisition positions eBay to lead in sustainable fashion resale, blending Depop’s vibrancy with established infrastructure – what could emerge from this union remains a key watchpoint. What do you think about eBay’s bold move? Tell us in the comments.