Chinese online fashion retailer Shein is set to raise around $2 billion in a new funding round this month and is aiming for a U.S. listing in the second half of this year, according to Reuters, citing people familiar with the matter.
This comes after the company attempted to list in the U.S. in 2020, but shelved the plan partly due to global economic volatility amid rising U.S-China tensions.
According to reports, the upcoming funding round of SHEIN will be spearheaded by Mubadala, the sovereign wealth fund of the United Arab Emirates with other notable participants including Tiger Global Management, General Atlantic (GA), and Sequoia Capital China.
However, neither SHEIN nor the investor groups have made an official statement confirming the funding round.
Shein, founded by Chinese entrepreneur Chris Xu, has grown into one of the world’s largest online fashion marketplaces since its 2008 launch in Nanjing. It produces clothing in China to sell online in the United States, Europe and Asia, and reportedly generated $10 billion in revenue during the pandemic period.
The company last month reportedly held initial talks with several investment banks to pick lead book-runners for the U.S. IPO. as it looks to expand its presence both online and offline in North America.
The flotation, if successful, would be one of the biggest worldwide this year and a test of U.S. investor appetite for Chinese companies amid volatile capital markets and geopolitical tensions.
According to sources familiar with the matter, Shein reduced its valuation to $64 billion for the upcoming fundraising round, a 30% decrease from its valuation in a funding round in 2022.