What is Depop? Depop Review

Company Introduction

Depop was founded by Simon Beckerman in 2011 and established its headquarters in London in 2012. The current CEO is Maria Raga, with a team of 100 people and offices in London, Milan, New York and Los Angeles. It is positioned as a P2P social shopping application. Its products are sold at a low price, mainly casual clothing.

Audience

The company said that about 90% of its active users are under the age of 26. In its home market of the UK, its platform is also popular among young people, with one-third of people aged 16 to 24 registering on Depop.

Business Model

Sellers can list on Depop for free, and can enjoy a 10% commission reduction when using PayPal transactions, with the goods being sent directly from the seller to the buyer.

Since Depop allows users to shop directly through their smartphones, their users can not only share their products through photos, but also easily set up their own online stores to sell these works. Depop also provides common social media features such as following and sharing.

Fashion blogger Chiara Ferragni and supermodel Bianca Balti are members of the Depop community.

Delivery logistics

In terms of delivery, buyers usually don’t see the same courier as the delivery person. Because the platform sellers need to handle all the delivery themselves, this means that if the buyer and seller are in the same city, they can also deliver face to face. Raga pointed out that in the United States, the company has now introduced a prepayment mechanism to assist in processing returns.

Financing

In January 2015, Depop received US$8 million in Series A financing from Balderton Capital (formerly Bain Capital Europe) and Holtzbrinck Ventures. After this round of financing, Depop will enter the US market with the participation of former Reddit general manager Erik Martin.

In January 2018, Depop announced that it had completed a $20 million Series B financing round led by Octopus Ventures, with participation from the brand’s existing investors Balderton Capital, Red Circle Investments and Lumar.

In June 2019, Depop completed its Series C financing of US$62 million. Investors included HV Holtzbrinck Ventures, Octopus Ventures, Creandum, Balderton Capital, Sebas, and General Atlantic.

Development History

In 2012, Depop moved its headquarters to London.

In 2013, the application was officially released on iOS.

In 2014, an Android version was launched.