Etsy Inc. (NASDAQ: ETSY) has made another significant acquisition that will enhance its presence in the Latin American market.
This week, Etsy announced it was purchasing Elo7, a Brazilian online marketplace for vintage goods and handicrafts. Elo7 will be the fourth brand under the Etsy umbrella and the first with a strong Latin American presence.
Elo7 sells unique handicrafts and currently has over 56,000 active sellers in over 40 product categories. There are approximately 2 million active buyers. Etsy reports that over half of the gross sales of goods on the platform come from special events, including weddings, birthdays, children’s parties, and housewarmings.
It is important for Etsy that Elo7 allows it to enter Latin American markets. In this region, e-commerce comprises less than 10% of retail, but Euromonitor reports that the sector will grow by 26 percent annually by 2025.
Both Etsy and Elo7 serve almost the same audience, which is focused on acquiring unique and original items. Etsy has been able to avoid competing with Amazon for a long time due to its impressive selection. The company will be able to strengthen its position against its competitors by entering new markets and new product categories.
Etsy stock acquired several important platforms in the past few quarters, including Depop, a popular apparel platform, as well as Reverb, a music merchandise platform. Internet retailer spent the funds it received during a successful last year when it reported a three-digit revenue increase on acquisitions.
Etsy Inc. (NASDAQ: ETSY) share price soared 1.63% to close at $205.84 in the last trading session on Wednesday, June 30.