Etsy, the online crafts marketplace, is banking on Latin America to be a growth catalyst for the e-commerce company with the acquisition of the Brazilian online marketplace Elo7.
Etsy shares jumped 7% Monday after it announced the $217 million deal to acquire Elo7, which Etsy CEO Josh Silverman called “the Etsy of Brazil.”
“This is all about growth potential over the medium and over the long term,” he said in a “Mad Money” interview. “The opportunity for Brazil’s e-commerce sector to grow faster than the U.S., we think, is very meaningful over time.”
The e-commerce market in Latin America has a penetration rate of less than 10%. The market could produce about $29 billion of revenue this…