eBay will acquire consumer-to-consumer (C2C) fashion marketplace, Depop, from Esty in a $1.2billion deal.

Depop, the mobile-first marketplace which has a highly-engaged Gen Z and Millennial customer base and ~7million active global users, allows shoppers to buy, sell, explore and discover second-hand fashion.

The addition of Depop will accelerate eBay’s C2C strategy, deepening its reach with younger, fashion-forward consumers while expanding its presence within resale. Depop will benefit from eBay’s global scale, as well as its financial services, shipping solutions and trusted experiences like Authenticity Guarantee to further accelerate growth.

eBay also plans to expand the visibility of Depop’s inventory, including through cross-listing opportunities, to amplify global demand and unlock additional market opportunities.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category,” said Jamie Ianonne, CEO of eBay. “As part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings and operational capabilities.”

“This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape.”

Peter Semple, Chief Executive Officer of Depop, added: “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the U.S. and beyond.”

“This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world,” said Semple.