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© Reuters. File picture: After Etsy’s initial public offering (IPO) on the Nasdaq in New York on April 16, 2015, an advertisement for online seller Etsy Inc. can be seen outside the Times Square Nasdaq market website. REUTERS/Mike Segar
(Reuters)-Etsy (NASDAQ:) Inc, an e-commerce company, said on Monday that it acquired Elo7, a Brazilian online market specializing in customized products, in a cash transaction of US$217 million, which is the first step in expanding into Latin America .
This move was made a few weeks after Etsy acquired Depop, a second-hand clothing buying and selling website popular among Gen Z consumers. Like the music markets Depop and Reverb acquired by Etsy in 2019, once the transaction is completed, Elo7 will continue to be operated as an independent market by its current leadership. The two companies expect this to happen in the third quarter.
“Elo7 is the’Etsy of Brazil’, and its purpose and business model are similar to ours,” Etsy CEO Josh Silverman (Josh Silverman) said in a press release. “This transaction will establish a foothold for us in Latin America, which is a low-penetration e-commerce region, and Etsy currently does not have a meaningful customer base in the region.”
These two sites connect buyers and sellers interested in homemade items, including accessories, toys and clothing. Founded in 2008, Elo7 has 56,000 active suppliers and sells products to more than 1.9 million buyers in Brazil.
According to data from JP Morgan LLC, according to the number of users, the country has the largest e-commerce market in Latin America, and the company acts as the exclusive financial advisor for Etsy to purchase Elo7.
Shares Etsy Corporation After the announcement, it rose 5.4%.
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