Depop
Established: 2011
Country: United Kingdom
Region: London
Investors: TempoCap, HV Capital, Balderton Capital, Creandum, Octopus Ventures
Depop was founded in 2011 and is one of the world’s most successful community-powered marketplace apps, where users buy and sell pre-owned fashion.
It is among the most popular shopping apps in the UK and US, with over 35 million users. 90% of the active users are aged under 26 and in 2021 the business was named by FastCompany as one of the top five most innovative retail companies in the world. The same year, Etsy announced it would acquire the company for $1.625bn. At the time, this was the largest all-cash acquisition of a private venture-backed technology company in Europe since 2019. Depop's 2020 gross merchandise sales (GMS) grew at a compounded annual growth rate of nearly 80% from 2017-2020. For TempoCap, which invested five times into the company during its holding period, the exit produced a cash-on-cash multiple at closing of 11.5x in three and a half years and an IRR of 127%.
80%
annual growth rate 2017-2020
35million
registered users
400
employees
We're on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that's changing the way we shop. We are taking an exciting leap forward as part of the Etsy family, benefiting from Josh's and his team's expertise, and the resources of a much larger company whose values are so aligned with ours here at Depop.
Key achievements
Depop sold to Etsy for $1.625bn, producing the largest all cash acquisition of a private venture-backed technology company in Europe since 2019 at the time
Depop's 2020 gross merchandise sales (GMS) and revenue were approximately $650 million and $70 million respectively, each increasing over 100% year-over-year
Depop's GMS grew at a compounded annual growth rate of nearly 80% from 2017-2020
Depop was the 10th most visited shopping site among Gen Z consumers in the U.S
The company raised approximately $100m from a range of venture capital firms
At the time of the acquisition, Depop had a community of approximately 35 million registered users across nearly 150 countries
For TempoCap, the acquisition resulted in a cash-on-cash multiple at closing of 11.5x in three and a half years and an IRR of 127%
At the time of acquisition, the company had approximately 400 employees
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