Etsy enjoys shares surge on US market debut

<p>Etsy opened 88 per cent up on its debut on the US market.</p>

Etsy has opened strongly on its US market debut with shares surging by 88 per cent.

It means that the arts and crafts marketplace is valued at almost $3.3 billion (£2.2 billion) and follows on from it shares sitting at $16 each on Wednesday (April 15th). This exceeded the company's expectation and was a result of a huge uptake in investor interest. Over $2 billion worth of goods was purchased by Etsy customers in the past year alone.

Despite this strong performance on its Nasdaq debut, Etsy has yet to make a profit and may never post one. The company explained that it has a commitment to social responsibility for its clients and customers and added that investors must be aware that the company is focused on more than just profits.

Writing in a blog post, Chad Dickerson, head of Etsy, said: "The investors we met on the roadshow understand that the key to Etsy's long-term success is building on and extending what has made Etsy successful to date: an inspired community of creative entrepreneurs.

"Buyers who want to buy unique merchandise that they can't find anywhere else, and a values-led community-based business that focuses on the long term."

Growing operations

The Brooklyn-based company has been steadily growing since first launched in 2005. In March 2015, it put forward proposals for an initial public offering valued at around $100 million which ultimately resulted in the major surge in investment from shareholders. It has increased substantially since 2010 and now boast 54 million members across the globe.

Etsy specialises in a wide range of goods from art and photography to jewellery, food, bath and beauty products.

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