Deal values British resale platform at $400 million less than Etsy paid for it in 2021.

eBay has agreed to acquire Depop, the London-based secondhand fashion marketplace, from Etsy for approximately $1.2 billion in cash. The transaction, unanimously approved by both companies’ boards, is expected to close in Q2 2026, pending regulatory approval.

Depop recorded annual gross merchandise sales of approximately $1 billion in 2025, with nearly 60% year-over-year growth in the U.S., according to a press release. The platform had 7 million active buyers as of December 31, 2025, nearly 90% of whom were under 34, along with more than 3 million active sellers.

Fashion represents more than $10 billion in annual gross merchandise volume for eBay, with U.S. fashion GMV growing 10% year-over-year in 2025.

Strategic Rationale

eBay CEO Jamie Iannone framed the acquisition as an extension of the company’s consumer-to-consumer strategy. “This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape,” Iannone said.

eBay plans to expand Depop’s inventory visibility through cross-listing opportunities and extend its suite of services, including financial services, shipping solutions, and its “Authenticity Guarantee” program, to Depop’s buyer and seller base. Depop is expected to retain its name, brand, platform, and culture following the close.

Etsy Refocuses on Core Marketplace

The sale marks a $400 million loss on Etsy’s 2021 acquisition of Depop for $1.6 billion. 

Etsy CEO Kruti Patel Goyal said the divestiture allows the company 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.” Etsy plans to use proceeds for general corporate purposes, share repurchases, and core marketplace investment.

Depop CEO Peter Semple said the 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.”

Shares in eBay rose 7% on the announcement, while Etsy shares climbed more than 15% in after-hours trading, according to The Guardian.