Etsy announced that it is buying Depop, the popular app for buying and selling secondhand clothes.
Etsy is paying $1.625 billion for the company, which it said will continue to operate from Depop's London HQ as an independent marketplace.
The deal gives Etsy a huge foothold among Gen Z shoppers: Etsy said 90% of Depop's users are under 26, with Etsy CEO Josh Silverman calling it "the resale home for Gen Z consumers."
Interest in secondhand retail and social commerce has been heating up in recent months: Poshmark went public in January and is currently trading at a $3.5 billion valuation, while Gucci owner Kering invested in Vestiaire Collective at an over $1 billion valuation in March.