ATC buys British fashion app depot for 1. 1.6bn in push of ‘General Z’

Etsy is achieved Deep, The second-hand fashion app, made for 6 1.6bn, as the market for handmade products expands its portfolio to younger customers.

The Trend For the online wine or recyclable clothing business that helped Dipp pioneer a decade ago, the multi-billion-dollar ecommerce company has now grown into a traditional fashion retailer. Shake Including the growing consumer demand for more ethical and sustainable manufacturing practices

More than 90 percent of Depot’s millions of active users are under the age of 26, an age group known as “Generation Z”, Giving access to a population younger than Etsy’s main customer base. Etsy users are usually a thousand or older, with sellers averaging around 39.

“The resale market in general is a huge market that we think is in a good position for future development,” said Josh Silverman, CEO of ST. “We think the most interesting community in General ZZ Resell is the community.”

Revenue from the London-based depot, which was established in 2011, more than doubled last year, mainly from sales commissions. Stands at 70 million. Its 4m active network of buyers and 2m sellers traded products worth about 50 650 million in 2020.

DDP has also partnered with brands including Adidas, Benetton and Ralph Lauren as fashion retailers focus on increasing their durability certificates.

“We share the same mission and we share the same values,” Silverman said. “We are both talking about keeping the trade humane. We are both about supporting creative entrepreneurs.

The takeover comes at a time when Nvidia Recommended The b 40 billion acquisition of the UK-based chip designer arm has reopened the debate over whether British and European technology companies are being reduced by larger U.S. competitors. The UK’s competition and market authorities have also stepped up investigations into the technology deal over the past year.

Silverman said the New York-based ATC was “truly integrated wherever all regulatory authorities want to go” because its technology helps individuals and small businesses compete with Amazon’s preferences.

“We provide a community and a brand that helps David compete with the Goliaths there to compete on a more level playing field,” he said.

The depot community is hopeful of tapping ATC’s expertise in providing security and scaling internationally, while Depp hopes to learn from the mobile skills and social media savvy.

Depot CEO Maria Raga said, “Many of the challenges we are taking on as a business have already been met by ATC.” “ATC has made great strides in search and discovery, and this is something we must learn.”

Estee will basically pay about 1. 1.6 billion for the depot in cash. Silverman said the price is “more than what you see in the market in terms of gross-adjusted gross profit, which is how most investors now see the resale ecommerce space.”

Dipp has increased sales faster than last year’s rival Pushmark and Threadup. Its price tag is higher than that of its nearest European competitor PoliteWhich was valued at মাসে 6.3 billion in private funding last month, while Poshmark currently trades at $ 6.3 billion in market capitalization.

When fashion group Kering took a 5 percent stake earlier this year, the Vestia Collective, which focuses on second-hand luxury clothing and accessories, was valued at more than bn 1bn.

Depop, which will retain its existing office and management team, raised nearly 100 100 million from venture-capital backs, including General Atlantic, Balderton Capital, Crayndam and Octopus Ventures. According to its latest annual report at the UK Company House RegistryDepot’s revenue grew 5 percent to. 29.4 million in 2012, but pre-tax losses tripled to £ 15.5 million.

Shares of Estee fell more than 10 percent last month, after it warned of “somewhat head over heels” that could “reduce the likelihood of ecommerce growth” later this year.

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