FORTUNE — Etsy, the operator of a handmade marketplace, has acquired Grand St. Grand St., which sells indie electronics online, had raised $1.3 million in seed funding from First Round Capital, Betaworks, Quotidian Ventures, Mesa+, and angel investors. Just two months ago, the company had positioned itself as the “Etsy for electronics.” From my interview with CEO Amanda Peyton at the time:
February was when Grand St. launched its own version of a marketplace where indie electronics companies could sell their wares. The company had just crossed the million-dollar mark in sales. The marketplace was well-received, Peyton says, and Grand St. had a new round of funding lined up.
But then, Grand St.’s founders were introduced to Etsy CEO Chad Dickerson, and they hit it off immediately, Peyton says. A deal was struck over the last two months. The companies won’t merge their marketplaces, though Grand St.’s eight employees will join Etsy at its Brooklyn headquarters.
Etsy currently sells electronics on its site, with items ranging from guitar pedals to handmade speakers, Dickerson said. That the site is known as more of a marketplace for home goods, jewelry, and other crafts, points to “a misunderstanding about the variety of things on Etsy,” he says. Etsy has no plans to expand into other categories through acquisition. This is the company’s fifth acquisition; the other four were integrated into Etsy, and Grand St. will be the first to maintain its brand and independent product.
The benefits of such a deal, Dickerson says, are that the two companies can learn from each other. Grand St. will teach Etsy about the world of indie electronics, which often involves things like pre-orders and beta periods. And Etsy will teach Grand St. about scale.
“Something that has really changed in the market is people now think of electronics as a creative pursuit, and I don’t think that’s always been true,” Peyton says. “The evolution around creators moving into making interesting small batch electronics is something that’s just beginning, and it is starting to grow.”
Recode notes that the deal valued Grand St. at less than $10 million.
From Etsy’s Blog post:
Update: Grand Street has published its own blog post on the deal. From it: