Just weeks after revealing it would acquire second-hand fashion platform Depop for 1.6 billion dollars, Etsy has announced it will buy Elo7, a Brazil-based marketplace for unique, handmade items.
Etsy said it will pay 217 million dollars in cash for the company, subject to certain adjustments.
Following the closing of the transaction, Elo7 will continue to be headquartered in Sāo Paulo and operate as a standalone marketplace run by its existing leadership team, Etsy added.
Elo7, often referred to as the “Etsy of Brazil”, connects approximately 1.9 million active buyers with approximately 56,000 active sellers and currently has around 8 million items for sale, the majority of which are made to order.
It sells items from over 40 retail categories, including fashion, and earns around half of its gross merchandise sales from the ‘special event and life moment’ categories such as wedding, baby, home decor, and children’s parties.
“Elo7 is the ‘Etsy of Brazil,’ with a purpose and business model similar to our own,” said Etsy CEO Josh Silverman in a release. “Following our recent agreement to purchase Depop, we’re excited to bring another unique marketplace into the Etsy family.”
Silverman added that the deal would give Etsy a “foothold” in Latin America, “an underpenetrated e-commerce region where Etsy currently does not have a meaningful customer base”.