Etsy, Inc. announced that it would purchase its Brazil-based counterpart, Elo7, for $217 million. Photo: Etsy
E-COMMERCE
Etsy to Purchase Brazil-Based Elo7, Establish Presence in Latin America
Elo7, a privately held marketplace for unique, handmade items, will be acquired by Etsy, Inc., for $217 million after a definitive agreement is signed.
Elo7 will give Etsy, which operates a two-sided online marketplace with millions of buyers and sellers around the world, a presence in Latin America as the platform is ranked in the top 10 of e-commerce sites in Brazil. After the purchase is complete, Elo7 will continue to be headquartered in Sāo Paulo and operate with its existing leadership team.
“Elo7 is the ‘Etsy of Brazil,’ with a purpose and business model similar to our own,” said Etsy Chief Executive Officer Josh Silverman. “This transaction will establish a foothold for us in Latin America, an under-penetrated e-commerce region where Etsy currently does not have a meaningful customer base. We look forward to welcoming Elo7’s talented leadership team and employees to the Etsy family.”
Elo7 has approximately 8 million items for sale in more than 40 retail categories with more than 50 percent of gross merchandise sales coming from “special-event and life-moment” categories including wedding, baby, home décor and children's parties. The marketplace also has nearly 2 million active buyers and some 56,000 active sellers.
“Etsy has always been an inspiration and a reference for us, and we’re excited to continue our growth journey as part of a company whose mission and culture so closely matches our own,” said Elo7 CEO Carlos Curioni. “We're looking forward to leveraging Etsy’s products and marketing expertise to help the Elo7 marketplace, community and team achieve our full potential in Brazil.”
The acquisition comes on the heels of another big purchase, through which Etsy agreed to purchase the peer-to-peer social-shopping application Depop for over $1 billion in early June. Etsy, Inc., will now operate four e-commerce brands under Etsy, Reverb, Depop and Elo7.
“We’re excited to announce this purchase of Elo7 following our recent announcement of the Depop transaction—two exciting businesses that meet Etsy’s very high bar for use of capital,” said Etsy Chief Financial Officer Rachel Glaser. “In addition to job one, which is continuing to drive growth to our core Etsy.com marketplace, we will now focus on integrating Depop and Elo7 into the Etsy family. Reverb, Depop and Elo7 will each continue to be run by their talented and empowered management teams, and we'll connect key functions across the brands in a way designed to accelerate value creation and make the whole worth more than the sum of its parts.”
