At a Glance:
- Shein will hold funding round at a valuation of about $100 billion.
- Will be considering reviving the listing plans later this year—after scrutinizing the economic market.
- Shein has a strong financial standing and does not wish to risk its reputation by pushing ahead with the deals in uncertain markets.
Shein is in talks with potential investors to raise $1 billion in a funding round. The Chinese fast-fashion start-up has been putting the plans on again off again due to the unfamiliar economic conditions.
They will hold funding round at a valuation of about $100 billion. The company was also ready to list in the U.S. but the plans were put under hold considering the volatile capital markets due to the Russian invasion of Ukraine.
Shein postpones listing plans
Shein has a strong financial standing and does not wish to risk the reputation by pushing ahead with the deals in uncertain markets. The current economic climate is unfavorable for risk-taking. Due to this will be considering reviving the listing plans later this year—after scrutinizing the economic market. There are no plans for IPO for now.
Uncertain market conditions for Shein
Shein is among the largest online fashion marketplaces since its launch in 2008. Last year, it was valued at about $50 billion. The fast-fashion start-up caters to the market of Europe, Asia, and the U.S.
The company planned to list on the U.S. IPO around two years ago but did not move ahead with the plan. due to the unfavorable market conditions, the plan was shelved. There was also a rising feud between the U.S. and China costing a lot of damage to the business. Shein might have been the first major U.S. equity deal by a Chinese company since regulators.
The founder Chris Xu was also exploring Singapore citizenship as part of the IPO process partly to bypass China’s new and tougher rules on overseas listings. Shein has targeted the ‘Gen Z’ customer base and has driven rapid success in the market. It has also expanded the Singapore office.
If the funding round goes as planned, the fast-fashion company might be revived in the online fashion marketplace as a top contender.
