Etsy acquires iOS photo app Mixel as annual worldwide sales hit $895m

Etsy
Etsy

Etsy

UPDATE International “marketplace for creatives” Etsy is ramping up its mobile strategy with the acquisition of iOS photo collage app Mixel

The team behind Mixel — Khoi Vinh (ex-design director at The New York Times), Scott Ostler, Akiva Leffert and Roy Stanfield — will join Etsy to “help accelerate our growth in mobile”, the company said today. 

Mixel

Mixel is a tool to make and share eye-catching photo collages, which can also be shared and adapted by friends on the usual social networks. While the financial details of the deal weren’t disclosed, the Mixel app will “live on” – but with its makers presumably now turning their attention to new or updated mobile apps for Etsy users.

“We expect our mobile traffic to surpass desktop traffic by the end of 2014. In some markets outside the US, we expect it to happen even sooner. That’s why it’s so key for the Mixel team to join us at this stage,” Etsy CTO Kellan Elliot-McCrea said in a prepared statement.

Vinh added: “We’re makers at heart, and we love what happens when a great community comes together to unleash creativity. There’s no better place for that than Etsy, so we’re incredibly excited to be joining this company.”

Etsy in Europe – strong foothold in Berlin

Since Rob Kalin, Chris Maguire and Haim Schoppik launched Etsy from the US in 2005, the platform – which lets users buy or sell handmade wares, vintage items, art and supplies – has grown to over 20 million members and 42 million monthly unique visitors across multiple continents.

In dollar terms, merchandise sales through Etsy were worth $895m worldwide in 2012. Since Etsy takes a 3.5 per cent commission on each sale, that implies revenue of at least $31.32m – excluding extra revenue from flat listing fees and search ads on site. The company doesn’t disclose figures, except to say it’s been profitable since 2009.

Last year, Etsy launched apps for iPad and Android and translated its iPhone app into three new languages (including German). Mobile visits grew 244 per cent in the past year, the company claimed today, and represent a steady 25 per cent of visits year round.

Etsy has a strong foothold in Germany, with Berlin home to its first office outside the US – an office led by Caroline Drucker, a former product and marketing manager at SoundCloud. Competitors for Etsy in Europe include DaWanda, also based in Berlin.

This article was updated to confirm Etsy’s 2012 global merchandise sales figure – $895m, not “above $850m” as we wrote previously. 

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