Etsy will acquire Depop, a British fashion resale marketplace that has become a cult favorite for Generation Z shoppers, in a $1.6 billion all cash deal. The deal will mark Etsy’s push into fashion resale, a booming market, and a bid to win over younger shoppers, following a turnaround by chief executive Josh Silverman that has seen the tchotchke marketplace become an ecommerce powerhouse over the last 18 months. 

The deal for the London-based app, which generated $70 million in revenue from handling $650 million of second hand clothes traded on its platform in 2020, comes amid a boom for clothes resales during the pandemic. Online thrift stores Poshmark and Thredup went public last year in the United States while one of Europe’s biggest resale marketplaces Vinted raised $303 million in funding at a $4.2 billion valuation last month.

Etsy already generated $1 billion in sales from clothing in 2020 but said there were significant opportunities to scale this segment, and build synergies across the marketplaces.

“We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale,” said Silverman.