(Reuters) -Etsy Inc said on Wednesday it would acquire Gen-Z focused fashion reseller Depop for $1.63 billion, as the online seller looks to attract younger shoppers.
More young consumers are moving toward second-hand fashion options, conscious of the environment and carbon footprint of the clothing industry.
The second-hand market is projected to grow at a 39% compound annual growth rate from 2019 to 2024 in the United States, reaching $64 billion, and to grow to twice the size of fast fashion on a global basis, Etsy said.
Depop, an online marketplace that allows people to buy and sell new or second-hand apparel, mainly has users under the age of 26 and is the 10th most visited shopping site among Gen-Z consumers in the United States, Etsy said.
The deal, which Etsy said would be funded via available liquidity, is expected to close during the third quarter of 2021.
(Reporting by Nivedita Balu in Bengaluru;Editing by Vinay Dwivedi)
