Etsy has completed purchase of Brazilian online marketplace, Elo7 in a $217 million deal in its first move into Latin America.
The Brazilian marketplace, which specialises in made-to-order goods will continue to run as an independent company under its existing leadership.
“Elo7 is the ‘Etsy of Brazil, with a purpose and business model similar to our own,” Etsy chief executive Josh Silverman said in a release.
“This transaction will establish a foothold for us in Latin America, an underpenetrated e-commerce region where Etsy currently does not have a meaningful customer base.”
Elo7 was founded in 2008 and currently has over 1.9 million buyers in Brazil purchasing from around 56,000 active vendors.
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Brazil has the largest ecommerce market in South America according to data from JP Morgan, which served as the financial advisor overseeing the deal for Etsy to purchase Elo7.
Etsy saw its shares rise by 5.4 per cent after the announcement.
Elo7 joins Depop as Etsy subsidiaries after the ecommerce giant announced it was to acquire the latter earlier this month.
The platform is branching out and attempting to reach new markets with its acquisitions in specialist online marketplaces as ecommerce figures skyrocketed during the pandemic.
Depop specialises in unique second-hand or “vintage” fashion items and its the 10th most visited shopping site among Gen Z, with nearly 90 per cent of its active users being under 26.