Elo7, Brazil’s answer to online craft marketplace Etsy, has acquired Argentinian competitor Bixti for an undisclosed amount of money. The company plans to further expand its business into Latin America.
Julian and Monica Ipolito founded Elo7 in 2008 with funding from Accel Partners, Monashees Capital, and Insight Venture Partners. The Brazilian company has been working to expand its engineering and customer service teams while increasing marketing efforts to build a stronger craft community. With 85 thousand merchants selling 1.5 million handmade products online, the Spanish-language site already draws 7.6 million visits per month.
American competitor Etsy operates on a larger scale, with 800,000 active merchants, 13.5 million items for sale, and more than one billion page views per month. But the company has no presence in Latin America: Etsy’s headquarters are in Brooklyn, NY and its three other offices are in Berlin, Hudson, and San Francisco.
Bixti came on the scene in November 2010. Based in Buenos Aires, Argentina, the site is also written in Spanish and is nearly identical to Elo7. Bixti had raised seed funding from startup incubator NXTP Labs prior to its acquisition by the larger company.
“The acquisition of Bixti will allow Elo7 to accelerate its growth plans and consolidate the two companies to become the largest online marketplace for handcrafted products in Latin America,” explained Elo7 in a press release. “The new Elo7 office in Buenos Aires will serve as a second development center for the company to attract engineering and design talent.”
Following the sale, Bixti co-founders Alexis and Marina Caporale, as well as the rest of the team, will join Elo7 COO Carlos Augusto de Araujo at the company’s new office in Buenos Aires.