London-based mobile fashion marketplace Depop has raised €55 million in a Series C Round led by General Atlantic. The funding round also saw participation from existing investors and takes the startup’s total investment to date to over €90 million.
Depop’s Younger Generation
The app-based marketplace, founded in 2011, offers a range of original streetwear, independent brands, and vintage designer clothes. Since then, it has developed a large following among the so-called Generation Z, which has grown up with such social connectivity.
Users can select their preferred style on Depop’s app, which then suggests shops and influencers to follow and buy from. Approximately 90 percent of Depop’s active users are under 26, and an estimated one-third of 16-24 year olds in the UK are registered on the platform.
Maria Raga, CEO of Depop, recognises the startup’s appeal to the younger generation, and said that the company “exists to empower the next generation to transform fashion.
“They want authenticity and to set their own trends. They want choice and individuality, the ability to buy on demand and sell on with ease. At the same time, they want to reduce waste. Depop meets these changing demands.”
Depop intends to use the fresh capital to accelerate its international expansion, particularly in the US. This includes growing its engineering and data science teams, as well as investing in new tools and functionality for the platform’s 13 million global users.
Depop has grown significantly in recent years, especially in the US, which the company projects will soon become its largest market. Since January 2018, Depop has almost doubled its US sales. This has led to the company opening physical stores in New York’s Chinatown and the Silverlake area of Los Angeles.
Depop is now among the top 20 most popular shopping apps in the US in terms of daily users, and expects its number of US users to reach 15 million over the next three years.