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Etsy has completed its acquisition of resale fashion app business Depop, which has an office in Manchester, for more than $1.6bn.

The NASDAQ-listed company has paid £1.625bn for the London-headquartered firm which also has bases in New York, Los Angeles and Sydney and has about 400 employees.

The deal was first announced at the start of June and Depop will operate as a standalone marketplace run by its existing leadership team.

Founded in 2011, Depop's 2020 gross merchandise sales (GMS) and revenue were approximately $650m and $70m, respectively, each increasing over 100% year-over-year.

Depop's GMS grew at a compounded annual growth rate of nearly 80% from 2017-2020.

Approximately 90% of Depop's active users are under the age of 26 while the app is the 10th most visited shopping site among Gen Z consumers in the US.

Etsy chief executive Josh Silverman said: "We believe Depop to be the resale home for Gen Z consumers with a unique offering and highly-engaged user base.

"With the closing of this incredibly exciting transaction, Etsy's 'house of brands' portfolio now includes four individually distinct, and very special, ecommerce brands – Etsy, Depop, Reverb and Elo7 – with parallel growth strategies, all sharing similar missions, visions, and values.