At a Glance
Elo7, a Brazilian online marketplace, will be acquired by Etsy, an American eCommerce company, for $217 million. Elo7, one of Latin America’s most popular e-commerce sites, would provide Etsy a far wider market presence, with 1.9 million active customers, 56,000 active merchants, and around 8 million items for sale. With its existing management team located in Sao Paulo, Brazil, Elo7 will continue to function independently.
Etsy, an American eCommerce company, has announced that it will acquire Elo7, a Brazilian online marketplace, for $217 million. Elo7 will continue to function as a separate brand, with its current management team based in Sao Paulo, Brazil.
Elo7, one of the leading e-commerce sites in Latin America with 1.9 million active shoppers, 56,000 active merchants, and about 8 million goods for sale, would offer Etsy a substantially more significant presence in the market.
“Elo7 is the ‘Etsy of Brazil,’ with a purpose and business model similar to our own. 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 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.”Josh Silverman, CEO of Etsy
“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. 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.”Carlos Curioni, CEO of Elo7
When many mature markets are seeing e-commerce growth slow — except the 44 percent increase in COVID-19 spending in 2020, pre-pandemic U.S. consumers were seeing e-commerce growth of around 15% and slowing year-on-year — Brazil has been booming because penetration is still low. According to Etsy, it is expected to increase by 26% by 2024.
“In addition to job one, which is continuing to drive growth in our core Etsy.com marketplace, we will now focus on integrating Depop and Elo7 into the Etsy family. Reverb, Depop [earlier acquisitions], 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.”Rachel Glaser, CFO of Etsy