Etsy names former head of Depop, Kruti Patel Goyal, as its new CEO

Online marketplace Etsy said on Wednesday that its long-time CEO, Josh Silverman, would step down by the end of the year.

Kruti Patel Goyal, Etsy’s president and chief growth officer, will become the company’s next CEO. Silverman, who headed the marketplace for eight years, will become its executive chairman.

Goyal worked at Etsy for more than 10 years until she was named the CEO of social-commerce platform Depop, which Etsy bought four years ago. She has been in her current role for about seven months.

Etsy has faced challenges in growing its business and may be looking to Goyal’s experience leading Depop to help revive growth. In its third quarter ended September 30, the number of active buyers on Etsy fell 5% to 86.6 million from a year earlier. The company experienced a user boycott in July after allowing the sale of merchandise branded with “Alligator Alcatraz” on its site.

Sellers on Etsy declined by 10.9% to 5.5 million in the third quarter, compared to a year earlier. Gross merchandise sales (GMS) for the quarter dropped 2.4% to $2.4 billion.

In contrast, Depop performed well, with the number of active sellers rising 40% to 3 million and active buyers increasing 38% to 6.6 million. Depop’s GMS jumped 39.4% to $292.1 million.

Following the news, Etsy’s shares were down nearly 9%.