June 28 (Reuters) – Ecommerce company Etsy Inc (ETSY.O) on Monday announced that it has acquired Elo7 – a Brazilian online marketplace specializing in bespoke products – in a $ 217 cash transaction million dollars in a first step towards its expansion in Latin America.
The move comes just weeks after Etsy’s acquisition of Depop, a second-hand clothing buying and selling website popular with Gen Z consumers. Like Depop and Reverb, a music marketplace Purchased by Etsy in 2019, Elo7 will continue to be managed by its current leadership as an independent marketplace once the deal is finalized. Businesses expect this to happen by the third quarter.
“Elo7 is the ‘Etsy of Brazil’, with a similar focus and business model to ours,” Etsy CEO Josh Silverman said in a press release. “This transaction will allow us to gain a foothold in Latin America, an under-penetrated e-commerce region where Etsy currently does not have a significant customer base. “
The two websites connect buyers and sellers interested in homemade items, including accessories, toys and clothing. Founded in 2008, Elo7 has 56,000 active sellers selling to over 1.9 million buyers in Brazil.
The country has the largest e-commerce market in Latin America based on the number of users according to JP Morgan LLC, who served as Etsy’s exclusive financial advisor for the purchase of Elo7.
Shares of Etsy Inc rose 5.4% after the announcement.
Reporting by Jimin Kang Editing by Matthew Lewis
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