Etsy CEO Josh Silverman has announced the purchase of Depop, a popular second-hand clothing marketplace app in the UK, for $1.62 billion.
Silverman told Mad Money with Jim Cramer that he is hopeful the expansion will lead to continued growth for Etsy.
Depop is widely popular with millennials and younger consumers, and Silverman predicts the acquisition will expand his company's reach to a younger audience.
"For Etsy, Depop might be for Etsy what Venmo was for PayPayl: The choice of the next generation," he told CNBC's Mad Money. "We're incredibly excited about that."
Etsy describes itself on its website as a "global marketplace for unique and creative goods. It’s home to a universe of special, extraordinary items, from unique handcrafted pieces to vintage treasures."
The popularity of second-hand marketplaces is only expected to grow as consumers pursue sustainable fashion practices, according to CNBC. The online marketplaces have gotten particularly popular among millennial and Gen Z shoppers.
"I still think we’re going to be amongst the highest growth rate e-commerce sites out there," Silverman told Mad Money.