Depop Limited
2021
$1.6B
Why
Etsy acquired Depop, a U.K.-based mobile-first fashion resale marketplace targeting Gen Z and Millennial consumers, for $1.625 billion primarily in cash. The acquisition was intended to expand Etsy's reach into high-frequency apparel resale and attract younger demographics. At acquisition, Depop had 55.6 million registered users, including 26 million active users, and 90% of its users were under 26.
Impact
Depop's GMS grew to $1.07 billion in FY2025, with active buyers reaching 7.0 million and active sellers 3.2 million. U.S. buyer GMS grew 60.2% year-over-year in Q4 2025. However, Etsy took a $897.9 million impairment charge in 2022, and the acquisition never achieved the expected returns.
Outcome
Pending sale at loss. Etsy entered into an agreement to sell Depop to eBay for $1.2 billion in February 2026, crystallizing a $425 million loss on the $1.625 billion acquisition price, excluding the $897.9 million impairment. The sale reflects failed diversification and a return to core marketplace focus.