Depop, the fashion app targeting Gen Z, said Thursday that it has raised $62 million in a Series C round led by General Atlantic.
The news comes on the eve of Depop Live, which will be held at 428 Broadway in Manhattan’s SoHo, this weekend. The biggest activation in the app’s history, the event will include workshops, panel discussions, live music and commerce, with participating sellers such as Slumpykev, Heron Preston and Telfar.
Depop plans to use the funds to accelerate its U.S. expansion, where the app counts 5 million users and operates stores in New York and Los Angeles. The platform expects to grow its community in the U.S. to 15 million over the next three years.
Internationally, Depop will allocate funds to grow its London-based engineering and data science teams and invest in new tools and functionality for the platform’s more than 13 million users globally.
The app’s mission is empowering the next generation to transform the fashion industry. Depop identifies and promotes generational shifts such as the circular fashion movement and social shopping, and champions independent brands.
Depop sellers have earned more than half a billion dollars through 19 million transactions since the platform’s 2011 launch. The platform wants to grab a bigger piece of the resale market, which is expected to more than double in value to $51 billion, from $24 billion, according to Wells Fargo.
Maria Raga, chief executive officer of Depop, said, the company has earmarked funds from the round for building awareness in the U.S., among other things. “Soon I’ll be able to disclose some partnerships,” Raga added. “We’re going to be working with brands. From a product standpoint, we want to make the platform better in terms of conversions.
The company grew sales in the U.S. between the first quarter of 2017 and first quarter of 2019 by 300 percent. Raga said 50 percent of new registrations have been coming from the U.S.
“Depop is in the top 20 shopping apps in terms of daily usage, according to metrics from Sensor Tower, which lists Amazon, Walmart and Poshmark as the top three,” Raga said. “It’s the only European app in that field.”
Depop feeds Gen Z’s appetite for fashion with its inventory of streetwear, independent labels, vintage designers and one-offs. About 90 percent of Depop’s active users are under 26, and one-third of all 16-to-24-year-olds in the U.K. are registered on the platform.
The average Depop user opens the app several times per day, discovering content, connecting with other users and buying and selling. The community’s members follow and message each other 85 million times per month.
“The next generation wants an experience that the fashion industry is struggling to provide,” Raga said. “They want authenticity and to set their own trends. They’re influenced by real people and want to reduce waste. Social shopping and resale is becoming more popular around the world, but particularly in the U.S. where Gen Z will be the largest consumer group by 2020.”
Existing Depop investors HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, and TempoCap participated in the round, along with angel investor Sebastian Siemiatkowski, cofounder and ceo of Swedish Fintech company Klarna.