// Shein in talks to raise up to £3bn in fundraising
// The fundraising would reduce the retailer’s valuation from £81bn to £51bn
Shein is in discussions to raise up to £3 billion in fundraising that would reduce its valuation from £81 billion to £51 billion.
The fast fashion retailer is seeking to close a new fundraising round from existing investors including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic.
The investors took part in the previous fundraising round which took place last April, valuing the business at £81 million.
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Since the Chinese retailer secured its billion pound valuation, there has been a decline in venture capital funding and a largely closed market for IPOs, which has led to a lack of funding for many private tech companies in the past year.
Despite the lack of funding, Shein expects to launch an IPO as early as this year in the US, which is its largest market, the Financial Times reported.
The news comes after Shein said in December that it was looking at redesigning its business to compete with the world’s biggest online players.
The retailer said it is considering a move to sell merchandise from third-party brands in addition to its own brand.
The plan would extend Shein’s moves to diversify its supply chain away from China, efforts that include manufacturing in Turkey and new warehousing in the US and Europe.
