(Yicai Global) Feb. 23 -- Shein, a Chinese online budget fashion retailer, is about to finish a new round of financing which could see its valuation reach USD70 billion, tech media 36Kr reported today, citing an industry insider.

Participants included existing shareholders Sequoia Capital China and Tiger Fund as well as newcomers such as US private equity firm General Atlantic and the United Arab Emirate’s sovereign wealth fund Mubadala. Mubadala is thought to have invested USD1 billion.

The funds raised will be used in relation to e-retailer Pinduoduo’s US-based online marketplace Temu, the report said, without going into more details and without specifying the amount raised.

Shein is at a critical stage of expanding its product categories and extending the reach of its platform across the US, Brazil, Mexico and the Middle East, and thus it needs a huge amount of money, the person said.

Shein, though, has denied the news of the fundraiser, the report said.

Temu, which was launched in September last year, has already started to compete with Nanjing-based Shein in the US. The platform entered Canada earlier this month and will access the western and southern parts of Europe in the next few months.

Shein, which also sells makeup, beauty products, pet supplies and electronics, raised about USD1.5 billion between the end of 2021 and early last year, boosting the firm’s valuation to USD65 billion, similar to what it is now.

Editor: Kim Taylor