London-based resale platform Depop has filed its accounts for last year revealing an 8 per cent increase in revenue, totaling £ 54.3 million. Despite an operating loss of approximately £ 59 million, the figure represents a substantial reduction from the previous year’s loss of £ 84.5 million.
This improvement in financial performance was attributed to a decrease in one-off costs, especially compared to the acquisition-related expenses faced in the previous year.
Depop remains optimistic, recognising significant growth potential due to its robust user engagement metrics, particularly among the Gen Z demographic, and its strong brand recognition in the UK and US markets.
Technological enhancements were a key focus, leading to the introduction of Depop Payments in the US and the launch of its onsite ads platform in October.
“Throughout the year, Depop improved the buyer experience by increasing product velocity and infrastructure, enhancing search capabilities, building new performance marketing channels with PLA, and launching Make an Offer, Depop Payments, and Boosted Listings,” the company’s owner Etsy Inc. stated in its filing.
In the past year, the platform observed a trend where the resale market outpaced the wider online fashion industry.
Notably, 92 per cent of its Gross Merchandise Sales (GMS) are generated from clothing transactions.
During the active year, Depop experienced various developments. CEO Maria Raga resigned in September, with Kruti Patel Goyal, former Chief Product Officer at Etsy, stepping in as the new CEO.
