Shein faces investor pressure to slash valuation to US$30 billion: sources
Shein shareholders are suggesting that an adjustment is needed to help get its potential initial public offering (IPO) in the UK over the line, the people said, asking not to be identified because the talks are private.
Shein has had a bumpy ride in its attempt to list, with questions raised over its supply-chain operations and labour practices amid mounting uncertainty over global trade relations and political tension. The company diverted its IPO application to London last year after its goal of listing in the US faltered.
Representatives for Shein did not immediately respond to a request for comment.
Founded in China but now based in Singapore, Shein became one of the world's most valuable start-ups thanks to its high-volume, low-cost fashion. Its investors include IDG Capital, Mubadala Investment, Tiger Global Management and HongShan Capital, formerly known as Sequoia Capital China.
Shein and rival Temu, owned by PDD Holdings, have attracted customers in places such as the US with cheap products shipped directly from Chinese suppliers, a model that has proved popular as households struggle with the rising cost of living. They also pose a challenge to the likes of Amazon.
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