Depop loss narrows as sales rise

London-based resale marketplace Depop has filed its accounts for last year and they show revenue rising 8% to £54.3 million. 

Although the company made an operating loss of around £59 million, that was significantly smaller than the prior year’s loss of £84.5 million. Its net loss came in at the same amount as the company had fewer one-off costs in the period compared to last year when costs linked to its acquisition by Etsy weighed heavily on the bottom line.

The business said its sees a “meaningful growth opportunity” given its “healthy user engagement metrics” and strong brand awareness in its core markets of the UK and US.

Most of its users are Gen Z and around 55% of those who made a sales last year also made at least one purchase. Around 92% of its GMS is clothing.

The company also highlighted how last year the resale market outpaced the wider online fashion industry.

As well as higher sales, it was a busy year for Depop on multiple fronts with its CEO Maria Raga resigning in September and being replaced by Kruti Patel Goyal, Etsy’s former product chief.

The company also made multiple tech enhancement during the year, rolled out Depop Payments in the US, and launched its onsite ads platform in October.