Fast fashion retailer SHEIN is planning to raise $2 billion in funding this month and has plans to go public in the U.S. later this year.
The funding round is being led by UAE’s sovereign wealth fund Mubadala and supported by the company’s existing investors, including private equity firm General Atlantic and venture capital firm Sequoia Capital China. Tiger Global is also said to be participating in the round.
The company has cut its valuation by a third to $64 billion for its latest funding round. As such, the company’s investors that participated in its 2022 funding round are expected to adjust the value of their stakes to match the company’s current valuation, according to Reuters.
With fresh funding under its belt, the company is reportedly gearing up to go public in the U.S. market. If its plans are successful, the IPO will be one of the biggest in the world in 2023. It would also serve as a bellwether for the market’s interest in making investments in international companies amidst rising global tensions and volatile capital markets.
SHEIN was founded in Nanjing in 2008 by Chinese entrepreneur Chris Xu. The company primarily manufactures its clothing in China and sells them in the U.S., Europe and Asian markets. In February 2022, the company moved its headquarters from China to Singapore to bypass the Chinese government’s crackdown on offshore IPOs. Xu also established himself as a permanent resident of Singapore.
Since then, the company has been testing the waters to go public in the U.S. but has been forced to delay its plans. In February last year, the company shelved its IPO plans as global markets reeled from Russia’s attack on Ukraine.
In the interim, the company has looked to bolster its presence in Latin America with the appointment of Marcelo Claure as the chairman of its Latin America division. It has also explored the idea of turning itself into an online platform where consumers can shop for third-party merchandise alongside its name-brand products.
