Etsy, the popular online marketplace focused around creative products, has acquired El07, often known as the Etsy of Brazil, for a whopping $217Mn. This deal will help the larger Etsy, which already operates in the country, expand its presence in the region, by making use of the existing userbase of El07, which has been able to carve out a significant presence in one of the biggest ecommerce markets on the planet.
In case you are not aware, Etsy is a platform where people can sell/buy uniquely creative items that are made by other people. If you love art, Etsy offers a wide collection of paintings sold directly by the artist, cutting out the middle man. If you love hand made jewellery, you will find a craftsmen of your liking on the platform. You get the gist. The company aims to help independent creators, by providing them a platform to get in touch with their clientele directly.
This format of e-commerce has been taking off recently, and while the likes of Amazon and Flipkart still dominate the sector, Etsy and its recent acquisition El07, are also leaving their mark on the internet. Thus, it makes sense for Etsy to try and grow inorganically in Brazil by acquiring a platform with a similar offering.
El07 has 1.9 million active buyers, 56,000 active sellers and some 8 million items for sale. After the acquisition, it will still continue to operate as a standalone brand, operated by its current management team out of its HQ in Sao Paulo, Brazil.
“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,” said Etsy CEO Josh Silverman.
El07 CEO Carlos Curioni seems just as excited about the deal, saying, “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.”
With people buying more stuff online than ever before, independent creators have to rely on platforms like Etsy to keep themselves in business. Thus, we might see a lot of similar acquisitions in the next few months.
