China’s fast-fashion juggernaut Shein is seeing private bids US$30 billion below April valuation
- Investors are evaluating bids for Shein stakes at a 30 per cent discount from US$100 billion valuation in April, sources told Bloomberg
- Slower sales growth for the e-commerce start-up and criticism over its environmental, social and governance record could impact IPO timeline
Investors looking to sell stakes in Shein are evaluating bids at discounts of about 30 per cent to its US$100 billion valuation in April, according to people familiar with the matter, amid concern about the Chinese fast-fashion giant’s slowing growth.
While some current shareholders in the private company are considering cashing out ahead of a future initial public offering, the valuation spread between buyers and sellers remains a hurdle to any trade, the people said, asking not to be identified because the matter is private.
Slower sales growth and criticism over Shein’s environmental, social and governance record could have an impact on the IPO timeline and valuation, the people said. These factors, along with the recent market turmoil in technology companies, have influenced some investors’ thinking about whether to sell at least part of their stakes privately, they said.
A representative for Shein didn’t immediately respond to requests for comment.
ByteDance’s private valuation down to US$300 billion amid IPO speculation
As part of its latest fundraising round earlier this year, Shein told existing investors that it hopes to have an IPO in the US as soon as 2024, people familiar with the matter have said.
The company’s successful fast-fashion business has sparked allegations of environmental damage, worker exploitation and copyright theft. A company spokesperson told Bloomberg News earlier this month that its business model minimises waste and enables it to be more sustainable.
