The valuation plummeted by 36%! Shein Seeks New Funding Round At $64 Billion Valuation

According to people familiar with the matter quoted by the media, the fast fashion brand Shein is negotiating financing of up to US$3 billion. In this round of financing, the company’s valuation has shrunk to US$64 billion, a drop of more than one-third from the peak. Existing investors include Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic. The three investors also participated in Shein’s last funding round last April, when the group was valued at just over $100 billion, making it the third most valuable private company in the world at the time, with a valuation of more than $100 billion. The sum of European and American fast-moving consumer giants H&M and Zara is second only to Bytedance and SpaceX. | Related Reading (Wall Street Insights)

Han Lei

Among the new unicorns that have emerged in the past two years, Shein is considered the most outstanding one. As a fast fashion platform, it quickly became popular among young consumers. In terms of revenue, the company achieved a revenue of 30 billion U.S. dollars last year. , including $6 billion in cash receipts, which is an excellent result. Such a start-up company, if it is ready to go public in advance, investors can grab the head. However, under the current market conditions, large companies have shrunk to ensure safety, venture capital financing has decreased significantly, and IPOs have become less and less. Shein’s financing this round is not ideal. However, more start-up companies are already facing the exhaustion of financing in this environment, and it may not be as good as Shein.

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