SÃO PAULO, 11 May (Reuters) – Enjoei announced this Monday that its board of directors approved the discontinuation of operations of the artisanal products marketplace platform Elo7.
‘As of this date, the Elo7 platform will no longer receive new orders’, stated the company in a relevant fact to the market, highlighting that it ensures compliance with all obligations to customers and sellers with transactions already underway.
‘The decision is based on a rigorous process of strategic review and capital allocation’, he explained. The platform was owned by the company’s wholly owned subsidiary Elo7 Serviços de Informática Ltda.
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‘Since its integration, Elo7 has faced a distinct competitive scenario, characterized by the strong expansion of large multinational e-commerce companies. This new context substantially increased customer acquisition costs and imposed scale barriers that compromised the economic viability of the unit given the current cost of capital’, added Enjoei.
The company said that it made several efforts to increase operational efficiency and promote structural adjustments aimed at reducing dependence on paid media to optimize the business, but that such measures were not enough to reverse the loss of scale, evidenced by the 39.5% drop in net revenue in the fourth quarter of last year compared to the same period in 2024.
According to Enjoei, the accounting and financial impacts of this decision will be detailed in the quarterly earnings releases.
