Etsy is acquiring one of Brazil’s top e-commerce sites.
Etsy has signed an agreement to acquire Elo7, a privately held online marketplace specializing in custom, handmade items, for $217 million in cash. Elo7 currently has about 1.9 million active buyers and 56,000 active sellers, with approximately 8 million items for sale, the majority of which are made to order. It is ranked as a top 10 e-commerce site in Brazil.
Earlier this month, Etsy agreed to acquire Depop, a U.K.-based fashion resell marketplace popular with younger consumers around the globe, for $1.6 billion, consisting primarily of cash.
Following the closing of the new deal, Elo7 will continue to be headquartered in Sao Paulo, and will operate as a standalone marketplace run by its existing leadership team.
"Elo7 is the 'Etsy of Brazil,' with a purpose and business model similar to our own,” said Josh Silverman, CEO, Etsy. “Following our recent agreement to purchase Depop, we're excited to bring another unique marketplace into the Etsy family. This transaction will establish a foothold for us in Latin America, an underpenetrated ecommerce region where Etsy currently does not have a meaningful customer base.”
Elo7's marketplace includes items from over 40 retail categories, with more than 50% of gross merchandise sales from "special event and life moment" categories such as wedding, baby, home decor, and children's parties.
“Etsy has always been an inspiration and a reference for us, and we’re excited to continue our growth journey as part of Etsy – a company whose mission and culture so closely match our own,” said Carlos Curioni, CEO, Elo7. “We’re looking forward to leveraging Etsy’s product and marketing expertise to help the Elo7 marketplace, community and team achieve our full potential in Brazil.”