Elo7’s de facto title as the “Etsy of Brazil” is set to become official, with Etsy announcing it will acquire the peer-to-peer online marketplace for $217 million. The deal marks Etsy’s second major acquisition this month, following the purchase of resale marketplace Depop in early June 2021.
Elo7 will give Etsy a foothold in the fast-growing Latin America market, where ecommerce penetration currently sits at less than 10% and is ripe for growth. With a focus on custom and made-to-order merchandise, the Elo7 marketplace currently connects 1.9 million active buyers with approximately 56,000 active sellers. Elo7 has close to 8 million items for sale, the majority of which are made to order. The marketplace includes items from 40+ retail categories, with more than 50% of gross merchandise sales coming from the special event and life moment categories such as wedding, baby, home décor and children’s parties.
Following the closing of the acquisition, Elo7 will continue to be headquartered in Sāo Paulo, Brazil and 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 of Etsy in a statement. “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.”
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