Etsy, an American e-commerce company focused on handmade or vintage items and craft supplies, is buying Depop, a London-based marketplace for the resale of fashion items, for $1.625 billion consisting primarily of cash.

The transaction is expected to close during the third quarter of 2021. Depop will continue to be headquartered in London and operate as a standalone marketplace run by its existing leadership team.

Founded in 2011, Depop posted in 2020 gross merchandise sales (GMS) and revenues of about $650 million and $70 million, respectively, each more than doubling year-over-year. Depop’s GMS grew at a compounded annual growth rate of nearly 80 percent from 2017 to 2020.

According to Etsy, “Depop has a highly differentiated position in the fast-growing resale space.” It added that about 90 percent of Depop’s active users are under the age of 26 and Depop is the 10th most visited shopping site among Gen Z consumers in the U.S.

Depop has a community of approximately 30 million registered users across nearly 150 countries. It had 4 million active buyers and 2 million active sellers in 2020.

The second-hand market is projected to grow at a 39 percent compound annual growth rate from 2019 to 2024 in the U.S. reaching $64 billion, and to grow to twice the size of fast fashion on a global basis, according to data released by Etsy.