The online peer-to-peer fashion marketplace Depop saw a narrowing of its losses in the pandemic-hit fiscal year ended March 31, 2021, as sales jumped and it attracted more users to its platform..
In its first financial results since being acquired by US online retail giant Etsy in June 2021 for $1.625 billion, Depop said group revenue rose 69% year-on-year to $70.3 million in the fiscal year..
Gross merchandise value (GMV), the total value of goods sold on its platform, grew by 62% to $1.65 billion. Depop saw active buyers increase by 33% to 4.1 million, while active sellers jumped 20% to 2.1 million in the period..
The company’s losses before interest, tax, depreciation and amortization (EBITDA) narrowed to $48.3 million in the 2021 fiscal year from $63.6 million in 2020, while its net loss was reduced to $51.7 million from $73.2 million a year earlier..
Depop said the platform benefited from a strong fourth quarter, when sales grew by 74% year-on-year and GMV surged by 67%. The company cited several factors for its growth in this period, including the launch of new features, enhancements to its product discovery system, and a focus on building its community and connecting buyers and sellers..
Chief executive Maria Raga noted that Depop’s growth was driven by strong demand for second-hand fashion, with the platform attracting a growing number of younger shoppers who are increasingly looking for sustainable and affordable options..
“We continue to invest heavily in the platform, making it easier for buyers and sellers to connect, while at the same time building and supporting our growing Depop community,” said Raga. “These investments have laid the foundation for Depop’s long-term growth and profitability.”.
Etsy, which also owns the namesake online marketplace and the Reverb musical instrument marketplace, said Depop performed strongly in the fourth quarter of its fiscal year ended July 31, 2022, with GMV growth in the “high 60% range.”.
Josh Silverman, Etsy CEO, said the company is excited about Depop’s long-term growth potential. “We see significant opportunities to invest in the platform, driving further growth, and to leverage Depop’s expertise in the resale space to support Etsy’s other marketplaces,” he said..
