Gen Z fashion app Depop raises $62m
Written by Hannah McGrath
Fashion marketplace app Depop has raised $62 million in its latest funding round, which included backing from Uber and Airbnb investor General Atlantic.
The London-based clothing app, which has surged in popularity with Generation Z shoppers since its launch in 2011, said it would use the funds to accelerate US expansion - where it has grown its user based to five million users - with plans to triple this number and open stores in New York and Los Angeles in the next three years.
Existing investors HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures and TempoCap also participated in the round, alongside angel investor Sebastian Siemiatkowski, founder and chief executive of Klarna.
The mobile marketplace, which has grown with the rise of the market for second hand fashion amongst sustainability-conscious Generation Z shoppers who buy and sell vintage, independent and High Street fashion items. It currently has 13 million registered users worldwide.
Approximately 90 per cent 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, the company said.
Maria Raga, chief executive of Depop, said: “The next generation of young people want an experience the fashion industry is struggling to provide. They want authenticity and to set their own trends, they’re influenced by real people.
“This latest investment will enable us to scale further and faster in the US and beyond, building a platform that helps to find and grow the fashion stars and trends of the future.”
Melis Kahya, General Atlantic’s head of consumer for EMEA, said: “Technology continues to transform the retail landscape around the world and we are incredibly excited to be investing in Depop as it looks to capture the huge opportunity ahead of it.”