Home » Fashion and startup, Etsy buys Italian Depop for $ 1.6 billion

Fashion and startup, Etsy buys Italian Depop for $ 1.6 billion

by admin

It is among the largest and most important acquisitions in the history of Italian startups, it concerns the second “unicorn” after Yoox, online fashion giant born a dozen years ago, and has generated a comeback for the Venetian incubator H-Farm 15.5 times larger than the investment initial: the American marketplace Etsy bought the Depop app, created in 2011 to sell and buy online, for $ 1.63 billion.

Gross sales of goods through Depop in 2020 were approximately $ 650 million, revenues of $ 70 million, both up by more than 100% compared to the previous year: to date, the platform has about 30 million users in over 150 countries, a product is loaded every half second and one is sold every 3 seconds; also last year, Depop transacted a billion items without going through shops or warehouses.

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The benefits for H-Farm (and for Etsy)
The so-called earn-out clause provides for the payment to H-Farm of 35% of the amount obtained by the sellers for the sale of the shares, net of transaction costs, bringing the total income of the incubator at 11 million euros, compared to an initial investment of less than 800 thousand euros; the clause is obviously subject to the closing of the transaction, expected by the third quarter of 2021.

After the announcement of the acquisition, Etsy gained 2.5% on the Nasdaq, reaching $ 167 per share: the American company, based in New York, in the Brooklyn area, has obviously focused on the Italian app with the aim of broadening the offer to the new generations.

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by SIMONE COSIMI



Where and how Depop was born
Depop’s story began about ten years ago in Veneto, and so its founder told it at the Startupitalia Open Summit in 2019: “My name is Simon Beckerman, but despite the English name I was born and raised in Italy, and I founded an app called Depop in Treviso. “After the foundation in 2011, the company moved to the United Kingdom, in London, it opened new sedi a Manchester, Los Angeles, New York, Milano e Sydney; today it has about 400 employees worldwide.

The move to England, again according to what Beckerman explained at the time, was linked to the fact that at the time in Italy there was no technical know-how to create a functional application to the type of product conceived and to the fact that our country lacked a capital market such as to allow adequate fundraising.

Staying in London allowed the nascent Italian company to grow so much that Crunchbase, the most authoritative observatory in the world on the venture capital market, awarded Depop 11 investment rounds for a total of 105.6 million dollars.

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