Etsy targets Gen-Z with $1.63 bln Depop takeover

It has an arts-and-crafts kind of image.

But Etsy has grown into a major corporation, with financial firepower to match.

On Wednesday (June 2), it said it was tapping those resources to buy fashion reseller Depop.

The takeover deal is valued at $1.63 billion.

Depop is an online marketplace that allows people to buy and sell new or second-hand apparel.

And Etsy hopes the acquisition will help it to target younger customers.

It says Depop is the 10th most visited shopping site among Gen Z consumers in the U.S..

Etsy estimates that the second-hand market will see 39% compound annual growth rates until 2024, making it a $64 billion business.

That as young consumers grow more mindful of the fashion industry's environmental and carbon footprint.

Etsy hopes to close the deal in the third quarter of this year.