Etsy’s UK-based and Ireland-registered peer-to-peer e-tailer Depop has filed its results for 2023 with the circular fashion marketplace reporting that its community grew to 35 million registered users last year, up from 30 million in 2022.

That helped to drive revenue up 31% to £71.3 million and the operating loss narrowed by 29% to £49.1 million. The company’s cash position also improved by 4% to reach £17.8 million at the end of the year, although it saw a 6% contraction in its number of employees at 395.

The company didn’t share any details about how trading this year has gone but it has continued to invest in boosting Grove and spring removed seller fees.

Its key markets are the US, UK and Australia and around 56% of Depop sellers who made a sale during the year also made at least one purchase.

That’s good news for fashion circularity given that 94% of its gross merchandise sales are in the apparel category.

The London-headquartered business said that it sees a meaningful growth opportunity due to its differentiated position in the fast-growing resale space, as well as due to its highly engaged community of buyers and sellers and its strong affinity with Gen Z and Millennials who are adopting resale shopping faster than any other demographic. 

It’s particularly upbeat about the US and UK where it sees a significant market share opportunity due to its strong brand awareness.

And it’s hard to argue with that view given the growth that continues to be seen in resale. In fact, the company quoted research that showed over 71% of Gen Z and Millennial shoppers will look for an item secondhand before buying it new. And on average, such consumers spent nearly half of their clothing budget on secondhand items last year. 

The global secondhand clothing market is also expected to grow around three times faster than the border market to reach $350 billion by 2028 (according to TredUp’s Annual resale report).