1.2 billion pounds! Not bad for a second-hand clothing app: Depop bosses want to benefit from the takeover by US giant Etsy
- Simon Beckerman, a 47-year-old British-Italian entrepreneur who was born in Milan and lives in London, founded Depop in 2011
- Beckerman is likely to make a decent profit along with CEO Maria Raga, other senior staff and supporters who have supported the company
- The deal will also bring generous returns to venture capital firms such as General Atlantic, Creandum, Octopus Ventures and Balderton Capital
The founder of the online second-hand marketplace Depop is expected to make a multi-million pound profit after being bought out by US rival Etsy for £ 1.2 billion.
Simon Beckerman, a 47-year-old British-Italian entrepreneur who was born in Milan and lives in London, founded Depop in 2011.
Depop declined to reveal how much Beckerman would make from the sale, but he will likely make a decent profit along with his managing director Maria Raga, other senior executives, and individual entrepreneurial backers who have backed the company.
In the money: Boss Maria Raga and founder Simon Beckerman
The transaction will also generate generous returns on venture capital firms such as General Atlantic, Creandum, Octopus Ventures and Balderton Capital.
Beckerman started his career starting the Italian magazine Pig with his brother. Then they founded the sunglasses brand Retrosuperfuture, now a successful Italian company.
He soon realized the power of internet shopping and created an online marketplace that combined Ebay-like technology with the image-driven social media attraction of an app like Instagram. Last year, Depop sold £ 459 million worth of items, including vintage clothing, handcrafted clothing, and limited edition clothing that shrewd youth bought from designers to sell for a profit. The platform generated revenue of £ 49 million, generated primarily through commissions.
Etsy is a relative giant in the world of online marketplaces – it has a market value of £ 15 billion and has made a name for itself by attracting sellers who make their own products or sell unique vintage items. But the average age of its users is 39, and it has been desperate to attract the younger generation. This sparked interest in Depop, where 90 percent of users are under 26 years of age.
This ‘Generation Z’ age group is ‘the most exciting resale community’ according to Etsy’s CEO Josh Silverman, as they are more likely to adopt second-hand fashion.
Depop has around 30 million registered users, many of them young people, who scroll through the images and buy what they like.
This technology has also helped build a sense of community among users – many follow specific salespeople for fashion advice or curated style tips.
Beckerman said: ‘This summer marks the tenth anniversary since Depop was founded and I am excited to celebrate this anniversary with an exciting new chapter. What Depop offers – easy access to unique fashion and a vibrant creative community – is truly unique. ‘
Raga added, “Our community is made up of people who are creating a new fashion system by setting trends and making new out of old. They come for the clothes but stay for the culture.”
But the takeover is a blow to the UK economy as the country loses ownership of another promising tech start-up.
Etsy said Depop’s headquarters will remain in London and will be managed by its existing executive team.