Etsy Inc said on Wednesday it would acquire Gen-Z focused fashion reseller Depop for $1.63 billion, as the online seller looks to attract younger shoppers.

More young consumers are moving toward second-hand fashion options, conscious of the environment and carbon footprint of the clothing industry.

The second-hand market is projected to grow at a 39% compound annual growth rate from 2019 to 2024 in the United States, reaching $64 billion, and to grow to twice the size of fast fashion on a global basis, Etsy said.

Depop, an online marketplace that allows people to buy and sell new or second-hand apparel, mainly has users under the age of 26 and is the 10th most visited shopping site among Gen-Z consumers in the United States, Etsy said.

The deal, which Etsy said would be funded via available liquidity, is expected to close during the third quarter of 2021.