Home » American Etsy buys Depop for $ 1.625 billion

American Etsy buys Depop for $ 1.625 billion

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Big stop in the digital market place sector. Today the purchase by the American Etsy of the former Italian startup Depop was announced. The transaction recognizes a value of 1.625 billion dollars for the company, founded in 2011 by Simon Beckerman in the Veneto incubator H-Farm. Depop thus becomes the second Italian unicorn after Yoox thanks to the numbers recorded last year: gross sales of goods were around 650 million dollars, while revenues amounted to 70 million dollars. Both numbers were up more than 100% year-over-year.

Etsy’s CEO Josh Silverman stressed that he sees Depop as “the resale home for Generation Z consumers” and believes there is significant potential to expand the business in the near future. On the other hand, the second-hand fashion market in the United States, for example, is estimated at $ 64 billion in 2024.

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Italy in Depop

The startup was founded in 2011 by Simon Beckerman, born in Milan in 1974 from an Italian mother and an English father. Depop’s birthplace was baptized by the Venetian incubator H-Farm, which will now receive $ 6 million at the closing of the sale in the third quarter of 2021.

The transaction, thanks to the earn-out clause provided for in the exit agreements, will generate for H-FARM an additional € 6 million with a return of 15.5 times compared to the initial investment (equal to € 792 thousand) . The earn-out clause provides for the payment of an amount, in favor of H-Farm, equal to 35% of the consideration collected by the current sellers for the sale of the shares purchased by them from H-Farm on the occasion of the exit agreements, at net of transaction costs related to the transaction with Etsy.

That was enough to ignite the H-Farm stock in Piazza Affari. The shares are up about 17%. On the other hand, with the collection of the consideration for the earn-out, H-Farm realizes and will exceed the expectations of the Business Plan presented just last 25 August 2020 in which collections from startup exits for 1 million euros a year. With this operation, the milestone with over 7 million euros is reached and exceeded (6 million from the Depop operation to which is added the million already achieved in 2020, overall about + 50% compared to the expected result).

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