Etsy is in the process of acquiring one of Brazil's top e-commerce sites.
Etsy recently signed a deal to buy one of Brazil's top e-commerce sites, Elo7, a private online marketplace specializing in custom handmade goods, for $217 million in cash.
Elo7, one of the top 10 e-commerce sites in Brazil, currently has about 1.9 million active buyers and 56,000 active sellers, with about 8 million items for sale on its online site, most of which are customized, according to data.
In fact, Etsy has been accelerating its acquisition drive. Back in early June, Etsy agreed to buy Depop, a British fashion resale market popular with young consumers around the world, for $1.6 billion, mostly in cash.
Following the completion of this acquisition, Elo7 will continue to be headquartered in Sao Paulo and will operate as a separate market run by its existing leadership team.
Etsy CEO Josh Silverman says that Elo7 is the 'Etsy of Brazil,' and that its website works with similar goals and business model to ours. Following the acquisition of Depop, we are pleased to bring another unique market into the "Etsy family.
The deal will establish Etsy's foothold in Latin America, showing Etsy's determination to build a Latin American e-commerce district. For Etsy, the penetration in Latin America is extremely low, it is an untapped market, and Etsy does not have a customer base here, this acquisition will open up the Latin American online market.
Elo7's online marketplace includes items from more than 40 retail categories, with more than 50 percent of gross merchandise sales coming from the 'special events and life moments' category, such as weddings, babies, home decor and children's parties.
Etsy has been a source of inspiration and reference for Etsy's products, Elo7 CEO Carlos Curioni said. "We are excited to continue our e-commerce journey with Etsy," he said. And Etsy's mission and culture dovetailing well with Elo7. We look forward to leveraging Etsy's product and marketing expertise to help the Elo7 market, community and team reach their full potential in Brazil.