Enjoei closed operations on the Elo7 platform this Monday (11). The board of directors approved the discontinuation of the artisanal products marketplace, which will no longer receive new orders from now on. The decision comes after a rigorous process of strategic review and capital allocation for the company.
The platform faced a challenging competitive landscape. Gigantes e-commerce multinationals expanded their operations and substantially increased customer acquisition costs, imposing scale barriers that compromised the unit’s economic viability. Enjoei sought to reverse this situation for months, but the attempts were not enough.
Queda Revenue and Competitive Context
Elo7’s net revenue plummeted 39.5% in the fourth quarter of 2025 compared to the same period in 2024. Esse’s performance reflected the difficulty of competing with consolidated platforms that have greater operational scale and investment power. The capital cost required to recover the unit became economically unfeasible, according to Enjoei.
Desde its integration into the Enjoei group, the marketplace faced increasing pressure. Enjoei made several efforts to increase operational efficiency and promote structural adjustments to reduce dependence on paid media. Implementou measures to optimize the business, reviewed internal processes and tried to improve the user experience. Contudo, these initiatives were unable to reverse the loss of scale.
Operações and obligations to customers
The company assured that it will fulfill all obligations towards customers and sellers with transactions already underway. Pedidos that are in progress will be delivered as agreed, ensuring continuity of services for active operations. The company said operational details will be communicated to platform users.
The discontinuity affects the company’s wholly owned subsidiary, Elo7 Serviços of Informática Ltda. The unit was responsible for operating the entire marketplace ecosystem, including technological infrastructure, seller service and order management. The closure of new operations does not affect other Enjoei units.
Impactos accounting and financial statements of the decision will be detailed in the quarterly earnings releases. The company will communicate to investors any material adjustments to the balance sheets and financial statements resulting from the discontinuation. Essas information will follow the protocol for disclosing relevant facts to the capital market.
Estratégia exit and market
The decision reflects a strategic change by Enjoei in relation to assets that do not show adequate profitability. The company chose to concentrate resources on more profitable operations with better growth prospects. The closure of Elo7 frees up capital and operational structure for investment in other business areas of the group.
The craft marketplace faces intense competition on Brasil. Plataformas and Etsy have global reach and superior technological capabilities. Marketplaces generalists such as Amazon, Mercado Livre and Shopee aggregate craft sellers on their platforms, dividing the attention of buyers. Redes Social media like Instagram and TikTok have allowed artisans to sell directly to consumers without intermediaries.
Contexto from the e-commerce sector
The e-commerce segment at Brasil continues to expand, but the market concentration in the hands of global and national giants increases every quarter. Pequenas specialized platforms face increasing difficulties in competing. The cost of user acquisition has skyrocketed in recent years, especially affecting smaller-scale businesses that are unable to achieve mass savings.
Elo7 was acquired by Enjoei in 2015, as part of the group’s expansion strategy. At the time, the marketplace was considered a relevant bet in the segment of artisanal and unique products. Desde then, the competitive landscape evolved significantly, reducing the unit’s profitability prospects.
The discontinuation will be formally communicated to all sellers registered on the platform. Enjoei will provide a transition period for merchants to migrate their inventory and history to other platforms if they wish. Dados of customers and transactions will be managed in accordance with legal data protection requirements.
