Etsy has announced that it will buy Brazil-based Elo7, a privately held marketplace for handmade items, for $217 million.

Elo7 has been ranked as one of the top e-commerce sites in Brazil.

Following the transaction, the company will remain headquartered in Sāo Paulo and will operate as a standalone marketplace run by its existing leadership team.

"Elo7 is the 'Etsy of Brazil,' with a purpose and business model similar to our own,” said Josh Silverman, chief executive, Etsy. “Following our recent agreement to purchase Depop, we're excited to bring another unique marketplace into the Etsy family.”

Silverman added: “This transaction will establish a foothold for us in Latin America, an underpenetrated ecommerce 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."

Elo7 sells custom and made-to-order merchandise in Brazil, connecting around 1.9 million active buyers with roughly 56,000 sellers. The platform currently has approximately eight million items for sale, the majority that are made-to-order.

"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,” said Carlos Curioni, Elo7’s chief executive. “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."

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