Shein to close new funding round at lower valuation

Shein is finalizing a new funding round at a marked-down valuation of around US$65 billion to US$70 billion, Chinese media outlet 36Kr reported, citing sources.

Sequoia Capital China, Tiger Global Management, Mubadala Investment Company, General Atlantic, Coatue, and DST Global back this round.

Last month, the company was reportedly in discussions to raise US$1.5 billion to US$3 billion at a reduced valuation of US$64 billion.

The Chinese ultra-fast fashion giant was said to have bagged US$1 billion last year at a US$100 billion valuation.

Financial Times reported that Shein is targeting a nearly US$60 billion revenue by 2025 – more than doubling its 2022 revenue of US$22.7 billion. This is part of the firm’s efforts to assure investors ahead of a possible IPO this year in the US.

The developments come as the company is facing new competition from Pinduoduo’s Temu in the US. Shein also moved its headquarters to Singapore last year to capture more consumers in Southeast Asia.

See also: Shein’s rapid rise in Southeast Asia could topple ecommerce giants