Etsy agrees to sell parent holding company of Elo7

In a regulatory filing earlier, Etsy disclosed that on July 17, Etsy entered into a quota purchase agreement to sell the parent holding company of Elo7 Servicos de Informatica S.A., its Brazil-based marketplace for handmade and unique items, to Enjoei S.A., a corporation in Brazil. Commenting on this decision CEO Josh Silverman said, “Although the Elo7 team has worked very hard to build a beloved marketplace and vibrant community in Brazil, we have not seen the performance we had anticipated when we made this acquisition two years ago, in part due to the macroeconomic environment. Given the circumstances, we believe this is the best outcome for Etsy, our stockholders and other stakeholders, and Elo7 and its employees, as well as the Elo7 buyer and seller communities. Following the close of the transaction, anticipated in the third quarter, Etsy’s House of Brands will include the three scaled, global marketplaces Etsy, Reverb, and Depop.” Etsy will provide further updates related to this transaction on its second quarter 2023 earnings call, the company stated in the filing.