Etsy is buying the fashion resale app Depop for $1.6 billion.

Depop, the fashion resale marketplace beloved by Generation Z, is to be acquired by Etsy for $1.6 billion, the two companies announced on Wednesday.

The cash deal, which is expected to close by the third quarter of this year, underscores the growing influence of clothing resale platforms. More shoppers are turning to the secondhand market for something cheaper and — potentially — greener as the overproduction of clothing increasingly adds to landfills.

The trend appears to have been accelerated by the pandemic as more shoppers looked to declutter wardrobes, earn cash by selling their old clothes or set up fashion customization businesses from their bedrooms.

Investor appetite is also on the rise. Last month, Europe’s largest secondhand fashion marketplace, Vinted, raised 250 million euros in a funding round that valued the start-up at €3.5 billion ($4.26 billion), while in the United States companies such as ThredUp and Poshmark have gone public this year.

Article source: https://www.nytimes.com/2021/06/02/business/etsy-is-buying-the-fashion-resale-app-depop-for-1-6-billion.html