Skip to main content
C
CorpDigest
Search

Etsy, Inc.

E-commerce MarketplaceFounded 2005
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

Etsy Acquisitions

4

Major Deals Covered

$2.1B

Disclosed Deal Value

What are Etsy's biggest acquisitions?

Etsy's largest disclosed acquisition here is Depop Limited for $1.6B in 2021. This page covers 4 major deals from 2016 to 2021, each with its price where disclosed and the reason behind it.

Major deals covered
4
Largest deal
Depop Limited ($1.6B)
First deal
2016
Most recent
2021
CompanyYearPricePurpose
Blackbird Technologies2016$32.5MEtsy acquired Blackbird Technologies, an AI startup, for $32.5 million to enhance its search and recommendation capabilities. The technology powers Etsy's machine learning engine for personalized product discovery, improving conversion rates and buyer engagement across 100 million+ listings.
Reverb Holdings, Inc.2019$275.0MEtsy acquired Reverb, a marketplace for new, used, and vintage musical instruments, for $275 million in cash. The acquisition was intended to extend Etsy's marketplace playbook into a vertical category with passionate buyers and sellers, similar to Etsy's own community. Reverb had surpassed $1 billion in total sales since its 2013 launch.
Depop Limited2021$1.6BEtsy acquired Depop, an 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.
Elo7 Serviços de Informática S.A.2021$217.0MEtsy acquired Elo7, the 'Etsy of Brazil,' for $217 million to establish a foothold in the Latin American e-commerce market, projected to reach $29 billion in 2021 with 26% annual growth. At acquisition, Elo7 had 1.9 million active buyers, 56,000 active sellers, and 8 million mostly made-to-order items.
What companies has Etsy bought?
Major acquisitions by Etsy documented here include Depop Limited (2021), Reverb Holdings, Inc. (2019), Elo7 Serviços de Informática S.A. (2021) and Blackbird Technologies (2016).
What is Etsy's most recent acquisition?
The most recent Etsy acquisition documented here is Depop Limited, in 2021, for $1.6B.

Depop Limited

2021

$1.6B

Why

Etsy acquired Depop, an 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

Divested. Etsy agreed in February 2026 to sell Depop to eBay for about $1.2 billion in cash and completed the sale on July 30, 2026, below the $1.625 billion it paid in 2021. Etsy had already recorded an $897.9 million Depop impairment in 2022.

Source →

Elo7 Serviços de Informática S.A.

2021

$217M

Why

Etsy acquired Elo7, the 'Etsy of Brazil,' for $217 million to establish a foothold in the Latin American e-commerce market, projected to reach $29 billion in 2021 with 26% annual growth. At acquisition, Elo7 had 1.9 million active buyers, 56,000 active sellers, and 8 million mostly made-to-order items.

Impact

Elo7's performance disappointed due to macroeconomic conditions in Brazil. The marketplace contributed only $42.1 million in GMS in 2023 before the sale. Etsy took a $147.1 million impairment charge in 2022.

Outcome

Sold at loss. Etsy sold Elo7 to Enjoei S.A. in July 2023 for an undisclosed amount, likely at a significant loss. The sale removed Latin America from Etsy's growth strategy and reduced the House of Brands to three marketplaces.

Source →

Reverb Holdings, Inc.

2019

$275M

Why

Etsy acquired Reverb, a marketplace for new, used, and vintage musical instruments, for $275 million in cash. The acquisition was intended to extend Etsy's marketplace playbook into a vertical category with passionate buyers and sellers, similar to Etsy's own community. Reverb had surpassed $1 billion in total sales since its 2013 launch.

Impact

Reverb operated as an independent brand under Etsy's umbrella, contributing $917.9 million in GMS in 2024. However, the marketplace faced 'significant GMS headwinds' in 2024, and Etsy decided to divest.

Outcome

Divested. Etsy completed the sale of Reverb on June 2, 2025, to Creator Partners and Servco Pacific for an undisclosed amount. The sale reflected a strategic decision to focus on the core Etsy marketplace rather than vertical diversification.

Source →

Blackbird Technologies

2016

$33M

Why

Etsy acquired Blackbird Technologies, an AI startup, for $32.5 million to enhance its search and recommendation capabilities. The technology powers Etsy's machine learning engine for personalized product discovery, improving conversion rates and buyer engagement across 100 million+ listings.

Impact

The acquisition enabled Etsy to deploy AI-driven search and recommendations that improved product matching and increased purchases. This technology layer became foundational to Etsy's personalization strategy and supported the launch of Gift Mode powered by OpenAI in 2024.

Outcome

Successful. The AI technology remains core to Etsy's product development and is cited in annual reports as a key investment area. The $32.5 million purchase price was modest relative to the strategic value.

Source →

Etsy, Inc.'s Growth & Acquisition Strategy

With growth in its core market flat, Etsy is concentrating on search and on removing mass-produced goods. It has more than 100 million unique items, which makes searching hard, so it is investing in AI to improve search relevance. It is also removing sellers of cheap mass-produced items, often dropshipped from China and presented as handmade, to protect the brand's reputation for genuine handmade goods.

How Etsy, Inc. Makes Money

Etsy operates a pure B2C and C2C two-sided marketplace model. They do not own warehouses or delivery trucks. They simply provide the software platform connecting buyers and sellers. The core revenue engine relies entirely on 'Take Rates'. The seller pays a fee just to list an item, and then Etsy takes a large cut (often over 6.5%) of the final sale price, plus payment processing fees. They also generate large, high-margin revenue through 'Etsy Ads', where sellers pay extra money to have their handmade products pushed to the top of the large search results.

Etsy Acquisitions FAQ

Why did Etsy acquire London-based fashion resale marketplace Depop in 2021?

Etsy acquired Depop in July 2021 for approximately $1.625 billion in cash. Depop gave Etsy immediate leadership in the fast-growing Gen Z secondhand apparel, streetwear, and vintage fashion resale market, expanding its reach among younger mobile-first shoppers.

What was the strategic rationale behind the 2019 acquisition of Reverb?

In 2019, Etsy acquired Reverb Holdings, Inc., a leading online marketplace for new, used, and vintage musical instruments, for $275 million in cash. The acquisition applied Etsy's marketplace playbook to a passionate vertical community of musicians, audio engineers, and collectors.

What was the Brazilian marketplace Elo7 and why did Etsy acquire and later divest it?

Etsy acquired Elo7, known as the 'Etsy of Brazil,' for $217 million in 2021 to establish a foothold in Latin America. However, amid post-pandemic macroeconomic challenges in Brazil, Etsy divested Elo7 in 2023 to focus capital and executive resources on its core platforms.

How did the acquisition of Blackbird Technologies in 2016 enhance Etsy's search capabilities?

In 2016, Etsy acquired Blackbird Technologies, a machine learning and artificial intelligence startup specializing in natural language processing and visual image search, which formed the algorithmic foundation for Etsy's modern semantic search engine.

What inventory and shop management tools did Etsy acquire through Grand St. and Aardvark?

Etsy acquired creative hardware marketplace Grand St. in 2014 and mobile development startups to accelerate mobile app development, merchant inventory tools, and seller analytics across mobile devices.

How does Etsy integrate acquired marketplace companies into its technology infrastructure?

Etsy maintains a shared-services model where acquired brands (like Depop) retain their distinct consumer branding, community culture, and front-end user experience, while leveraging Etsy's centralized expertise in cloud infrastructure, trust and safety, payment processing, and digital marketing.

What criteria does Etsy use when evaluating potential M&A targets?

Etsy targets two-sided marketplaces with passionate buyer and seller communities, high organic traffic, unique unstandardized merchandise catalogs, low capital intensity, and strong alignment with Etsy's mission to 'Keep Commerce Human'.

How has Etsy funded its major strategic acquisitions over time?

Etsy has funded major acquisitions primarily through a combination of balance sheet cash flow and low-interest convertible senior debt offerings, preserving shareholder equity while maintaining strong liquidity reserves.

What companies has Etsy acquired?

To diversify away from just crafts, they aggressively acquired niche marketplaces. They bought Reverb (musical instruments) for $275 million in 2019, and executed a massive $1.6 billion acquisition of Depop in 2021 to capture the massive Gen Z market for secondhand vintage clothing.

Related Companies

JD.comAlibaba Group Holding LimitedFlipkartAmazon.com, Inc.Meesho

Compare Etsy, Inc. With Competitors

Etsy, Inc. vs JD.comEtsy, Inc. vs Alibaba Group Holding LimitedEtsy, Inc. vs FlipkartEtsy, Inc. vs Amazon.com, Inc.Etsy, Inc. vs Meesho

Related M&A Histories

Compare corporate acquisition records, deal values, and strategic targets

Competitor

JD.com

View M&A Histories
Competitor

Alibaba Group Holding Limited

View M&A Histories
Competitor

Flipkart

View M&A Histories
Competitor

Amazon.com, Inc.

View M&A Histories
Competitor

Meesho

View M&A Histories
Competitor

BigBasket

View M&A Histories

Explore Etsy

Core profile pages, founders and related research hubs for this company.

Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.