In the summer of 2021, during the tumultuous days of the pandemic, Etsy's CEO Josh Silverman announced the acquisition of Depop, the trendy London-based marketplace for second-hand clothes, for a staggering £1.3 billion.
Depop had quickly gained a following among millions of home bound young people. However, the subsequent downturn in the e-commerce market led to Etsy writing down Depop's value by a substantial $897.9 million in the following year. Etsy's Chief Product Officer, Kruti Patel Goyal, was brought in to steer Depop back on course.
Recent financial statements from Companies House unveiled pre-tax losses of £59.4 million for Depop, surpassing its sales of £54.3 million. Despite this, the company claimed that recent trading has shown 'very encouraging' signs.
Etsy, having injected a total of £42.8 million into Depop, remains firmly committed to the cause. However, it's worth noting that, according to Prufrock's investigation, Etsy's refund policy does not seem to apply.