Social Resale App Depop Raises $62M to Expand in U.S. Market
London-based social shopping platform Depop secures $62 million in Series C funding to enhance its technology and aggressively grow its U.S. user base. The startup currently boasts 13 million users and targets the booming Gen Z resale market.
Social shopping platform Depop raises $62 million in a Series C funding round led by General Atlantic to capitalize on the growing popularity of omni-channel commerce. The London-based startup allows individuals to sell and resell items directly to their followers through social feeds, successfully attracting over 13 million users to its platform.
The company plans to use the new capital to improve its technology, specifically by building advanced recommendation and image detection algorithms. Additionally, Depop focuses heavily on expanding its presence in the United States, a market that currently includes 5 million users and projects growth to 15 million users within the next three years.
Depop faces significant competition from established peer-to-peer platforms like Poshmark and social networks like Instagram, but it targets a massive opportunity in the second-hand clothing sector. With 90% of its active users under the age of 26, the startup is perfectly positioned to capture a share of a resale market that experts expect to double to $51 billion over the next five years.