Etsy, Inc.
E-commerce MarketplaceFounded 2005- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Etsy, Inc.
Company History
Founded 2005 in Brooklyn, New York
Last reviewed: 2025-07-15 · By Swet Parvadiya
Etsy is at an inflection point. After eight years of Josh Silverman's leadership that grew revenue from $441 million to $2.88 billion, the company is retrenching under new CEO Kruti Patel Goyal. FY2025 revenue grew just 2.7% to $2.88 billion, the slowest pace since the IPO, while net income collapsed 46.3% to $163 million. The core Etsy marketplace GMS declined 5.3% to $10.46 billion, habitual buyers fell to 5.9 million, and active buyers dropped to 86.5 million. Yet the company maintains a 24.2% take rate, $734.5 million in Adjusted EBITDA, and $1.6 billion in cash. The strategic bet is that selling Depop for $1.2 billion and focusing all resources on the core marketplace will re-accelerate GMS growth in 2026. Q1 2026 guidance calls for Etsy marketplace GMS of $2.38-2.43 billion, slight year-over-year growth, and an Adjusted EBITDA margin of 28-30%. The question is whether Etsy can reverse buyer erosion in a market where Temu and Shein are spending billions to capture price-sensitive consumers, and whether the handmade value proposition remains compelling when household budgets are strained.
Robert Kalin attended five colleges including MIT and NYU before graduating with a BA in individualized study in 2004. He worked as a carpenter and photographer, building 'inside-out computers' — functional PCs encased in wood with transparent tops. When he couldn't sell them, he realized other artisans faced the same problem. Through GetCrafty.com, he met Chris Maguire and Haim Schoppik, and the trio built Etsy in Kalin's Brooklyn apartment in six weeks. Kalin was the visionary and public face of Etsy, securing early funding from angel investors and later from Accel Partners. He was known for his eccentricity — wearing bright coral nail polish to announce his departure as CEO in 2008 — and his Marxist-inflected rhetoric about commerce. After leaving Etsy in 2011, he largely disappeared from public view.
Chris Maguire earned a BA in Art, Computer Science & Animation from NYU. He was the primary developer who built Etsy's backend systems, database architecture, and original marketplace functionality. Working alongside Haim Schoppik, he essentially moved into Kalin's apartment for six weeks to launch the site. After departing Etsy in 2008, he founded Waffl, a community marketplace for innkeepers, and Postling, a social media management tool. In a 2015 interview, when asked if he missed Etsy, he replied: 'No. Etsy was a fascinating community to build for and grow alongside, but the working environment was not something I've ever felt wistful about.'
Haim Schoppik was a web developer who met Robert Kalin through GetCrafty.com. He left NYU before graduating to build Etsy full-time. Along with Chris Maguire, he handled the software development and technical infrastructure while Kalin focused on vision and community. Schoppik and Maguire's departure in August 2008 marked the end of the original technical team. In their farewell blog post, they wrote: 'The last three years have undoubtedly been the longest and most eventful of our lives. We'd like to thank each and every one of you for enabling us to build Etsy into what it is today.' After Etsy, he joined Waffl as CTO.
Jared Tarbell was a programmer from Albuquerque who joined Etsy shortly after its June 2005 launch. He left a comfortable salaried position to work for a startup salary in a remote capacity, recognizing the opportunity in Etsy's mission. He contributed to the platform's early technical architecture and creative tools. Tarbell was part of the four-person team that grew Etsy to 10,000 sellers and 40,000 buyers within 10 months of launch, entirely through word-of-mouth and organic growth with no advertising spend.
Robert Kalin, Chris Maguire, and Haim Schoppik built and launched Etsy in June 2005 from a Brooklyn apartment. The first item sold on the fourth day. By mid-2006, the platform had 10,000 sellers and 40,000 buyers with zero advertising spend.
Etsy raised approximately $615,000 in a funding round led by Union Square Ventures, with Fred Wilson joining the board. The valuation reached approximately $10.7 million by November 2006. This was the first institutional capital after initial angel funding of approximately $193,000.
In January 2008, Etsy raised $27 million from Accel Partners and Jim Breyer at a valuation just under $100 million. In August 2008, both technical co-founders Chris Maguire and Haim Schoppik departed, and CEO Robert Kalin stepped down for the first time. Maria Thomas was promoted from COO to CEO.
Robert Kalin returned as CEO in December 2009 after Maria Thomas's brief tenure. Chad Dickerson, recruited from Yahoo, joined as CTO in September 2008 to professionalize the company's technical infrastructure. Kalin was fired for the final time in July 2011, and Dickerson became CEO.
Etsy became a certified B Corporation in 2012, recognizing its commitment to social and environmental responsibility alongside profits. This made it one of the first major tech companies to pursue this certification, aligning with its mission to 'Keep Commerce Human.'
Etsy went public on April 16, 2015, pricing shares at $16 each and raising $267 million. The stock surged 88% on the first day of trading to $30.01, giving the company a market capitalization of $3.4 billion. The IPO valued the company at $1.8 billion at the offer price.
Etsy acquired Blackbird Technologies, an AI startup, for $32.5 million to enhance its search and recommendation capabilities. This technology now powers Etsy's machine learning engine for personalized product discovery across 100 million+ listings.
In May 2017, board member Josh Silverman replaced Chad Dickerson as CEO after a first-quarter loss and an 8% workforce reduction. Silverman, former CEO of Skype and president at American Express, refocused the company on core marketplace growth and profitability. Revenue was $441.1 million in 2017.
In July 2019, Etsy acquired Reverb, a marketplace for new, used, and vintage musical instruments, for $275 million in cash. Reverb was founded in 2013 by David Kalt and had surpassed $1 billion in total sales by 2017. Etsy viewed it as a natural extension of its mission to 'keep commerce human.'
Etsy experienced massive growth during the COVID-19 pandemic as consumers turned to handmade goods, personalized items, and face masks. Gross merchandise sales more than doubled year-over-year to $10.3 billion. Face mask sales alone reached $346 million in Q2 2020. Active buyers surged from 46.3 million in 2019 to 81.8 million in 2020.
In June 2021, Etsy acquired Depop, a U.K.-based fashion resale app targeting Gen Z, for $1.625 billion. In July 2021, it acquired Elo7, the 'Etsy of Brazil,' for $217 million. Both acquisitions were made at peak tech valuations and later proved problematic. Depop had 55.6 million registered users and Elo7 had 1.9 million active buyers at acquisition.
Etsy recorded $1.0 billion in asset impairment charges, including $897.9 million for Depop and $147.1 million for Elo7, reflecting the decline in valuations and performance of its 2021 acquisitions. The company also raised its transaction fee from 5% to 6.5% in April 2022, triggering a seller strike.
In July 2023, Etsy sold Elo7 to Brazilian marketplace Enjoei for an undisclosed amount, likely at a loss. In December 2023, the company laid off 225 employees (11% of its workforce) due to challenging macroeconomic conditions and flat gross merchandise sales since 2021. CMO Ryan Scott and CHRO Kimaria Seymour departed.
Etsy reported revenue of $2.81 billion in 2024, up just 2.2% from 2023, the slowest growth rate since the IPO. The company introduced a seller setup fee in early 2024 to improve listing quality, which initially caused a seller purge before retention inflected positively in late 2024. Net income was $303.3 million.
On June 2, 2025, Etsy completed the sale of Reverb to Creator Partners and Servco Pacific. On February 18, 2026, the company announced an agreement to sell Depop to eBay for $1.2 billion in cash. Revenue reached $2.88 billion, up 2.7%, but net income fell 46.3% to $163.0 million. Kruti Patel Goyal became CEO on January 1, 2026, replacing Josh Silverman, who transitioned to Executive Chair.
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.
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.
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.
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.