Since its launch in 2011, Depop has matured from a unique social network into a leading fashion resale platform. From its roots in a tech incubator in Italy to becoming a globally recognized fashion resale platform owned by Etsy, Depop's journey is marked by strategic growth, community-driven success, and an unwavering focus on sustainable fashion.
Through substantial funding rounds and a strategic focus on engaging Gen Z and millennial users, Depop evolved into a global marketplace for secondhand fashion. Its 2021 acquisition by Etsy for $1.625 billion signified its integral role in promoting circular fashion and sustainable consumer practices. Operating as a standalone brand under the Etsy umbrella, Depop has continued to thrive, expanding its user base and reaffirming its commitment to reducing waste and perpetuating fashion with purpose.
What is Depop?
Depop is a social e-commerce platform launched in 2011 by Simon Beckerman. Initially conceived as a social network for readers of the PIG to purchase items from featured creatives, Depop has evolved into a vibrant marketplace for buying and reselling secondhand fashion.
Depop aims to promote sustainable fashion and reduce waste by encouraging clothing resale. The platform has garnered a strong user base, particularly among Gen Z and Millennials, with 90% of its active users under 26. As of 2024, Depop boasts over 35 million registered users, 4.2 million active buyers, and 1.9 million active sellers.
Founding and Early Years:
- 2011: Founded by Simon Beckerman at Italian tech incubator H-Farm. Initial investors included Paolo Barberis and Nana Bianca.
- 2012: Headquarters moved from Italy to London—early growth supported by seed investment.
Growth and Expansion:
- 2013: Beckerman secured €1 million in funding from Red Circle Investments. Runar Reistrup joins as the new CEO.
- 2015: Raised $8 million in investments from Balderton Capital and Holtzbrinck Ventures.
- 2016: Achieved significant expansion and user growth through word of mouth. Became the official app sponsor for the Vans Warped Tour.
- 2019: Secured $62 million in Series C funding from General Atlantic, HV Holtzbrinck Ventures, Balderton Capital, Creandum, and Sebastian Siemiatkowski.
Etsy Acquisition and Continued Growth:
- 2020: Gross merchandise sales and revenue doubled, reaching $650 million and $70 million, respectively.
- 2021: Acquired by Etsy for $1.625 billion in cash. Depop continued to operate as a standalone brand.
Business Model and Market Presence:
- 2021 (Post-Acquisition): Depop boasts 30 million users and 400 employees as a subsidiary of Etsy. Continues to serve a global market, including the UK, US, Australia, and Italy, focusing on resale fashion and preloved items.
- 2024: It will continue to be a popular platform for Gen Z and millennial users, promoting circular fashion and reducing wasteful consumption practices.
Notable Achievements and Impact:
- Hosted workshops for top sellers, enhancing their skills in areas such as photography, taxes, and account management.
- Successfully made second-hand fashion mainstream, driving a cultural shift in the fashion industry among younger consumers.
Conclusion
Depop's evolution from a niche social network to a dominant force in the secondhand fashion market is a testament to its innovative business model and strategic growth path. Looking ahead, Depop’s promise to promote circular fashion remains unwavering, with its community playing a crucial role in shaping the future of sustainable style. As it continues to innovate and grow, Depop is poised to leave an indelible mark on the fashion industry for years.
