Depop swings to FY operating loss
British resale platform Depop swung to a loss last year as the strong demand it saw during the pandemic began to wane.
In the 12 months to December, the company made an operating loss of 84.5 million pounds compared to a profit of 0.4 million pounds a year earlier.
That came as revenue increased slightly by 2 percent to 50.1 million pounds.
The company said growth was strong in the first quarter of 2021 driven by continued lockdowns, but that growth stabilised from the second quarter onwards “in line with industry trends” as stores reopened.
Founded in 2011, Depop is a community-powered marketplace particularly popular with Gen-Z consumers who like to buy and sell pre-loved clothing and other products.
The company was bought for 1.6 billion dollars last year by Etsy, a US marketplace that specialises in handmade and vintage goods.
In Depop’s most recent filings, it was revealed that Etsy injected an extra 15.1 million dollars into the business.