Etsy Shrinks Its House of Brands by Dumping Elo7
One of the pillars of 's (NASDAQ: ETSY) growth strategy has been to assemble a "House of Brands" to go after opportunities that are outside the core focus of its namesake online marketplace. While the Etsy marketplace focuses on handmade and unique items, the company's other acquired marketplaces expand its total addressable market to other areas.
Up until Tuesday, this House of Brands had four members. The Etsy marketplace is by far the biggest. In the first quarter of 2023, Etsy generated $2.7 billion of gross merchandise sales out of $3.1 billion total. The rest came from the company's other three marketplaces: Reverb for buying and selling musical instruments, Depop for fashion resale, and "Etsy of Brazil" Elo7.
Etsy paid $217 million in 2021 for Elo7 to break into the Latin American market. The company's other marketplaces operate globally, but Elo7 was already a top 10 e-commerce company in Brazil when it was acquired. When the deal was announced, Elo7 had 1.9 million active buyers, 56,000 active sellers, and about 8 million mostly made-to-order items for sale.
Source Fool.com
