Lumar is set to exit the Gen Z-focused social commerce platform in an acquisition by Etsy that comes after about $100m in funding.
E-commerce marketplace Etsy agreed yesterday to acquire Depop, the UK-headquartered social commerce platform developer backed by consultancy group Lumar, for over $1.62bn.
Depop operates a mobile platform with 30 million registered users – 90% of whom are under 26 years of age – who can buy and sell second-hand and new fashion items in addition to offering styling services. It generated $70m in revenue in 2020.
The deal comes after roughly $100m in funding for Depop since it was founded in 2011, $62m coming from General Atlantic, HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, TempoCap and Sebastian Siemiatkowski in a 2019 series C round.
Octopus Ventures led a $20m round for the company the previous year that included Lumar, HV Holtzbrinck Ventures, H-Farm, Creandum and Balderton. It had raised $8.25m from Lumar, Balderton, Holtzbrinck Ventures, Creandum and Red Circle Investments in 2016.
Etsy CEO Josh Silverman said: “We are simply thrilled to be adding Depop – what we believe to be the resale home for Gen Z consumers – to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly differentiated offering of unique items, and we believe significant potential to further scale.
“Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy’s DNA and mission of Keeping Commerce Human.
“We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, e-commerce brands.”