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  • 📈 Shein’s IPO: Fashion Giant Eyes £50bn

📈 Shein’s IPO: Fashion Giant Eyes £50bn

SumUp Eyes $9bn Valuation Jackpot

October 08, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Shein’s IPO: Fashion Giant Eyes £50bn

  • SumUp Eyes $9bn Valuation Jackpot

  • Very Group Sale: Who’s Next in Line?

The summary: Shein’s booming UK success and £50bn IPO ambitions have it strutting towards fashion dominance, but its rapid rise is drawing sharp questions from MPs about ethics and supply chains.

The details:

  • Shein’s UK turnover soared to £1.6bn in 2023, a cheeky 40% rise, setting the stage for its London IPO and a possible eye-watering £50bn valuation.

  • With profits doubling to £24m and a new Manchester office, Shein’s UK operations are strutting toward major market dominance, now among the UK’s top e-commerce players.

  • The firm boasts a largely female workforce, with women leading the charge in key UK roles—power dressing, Shein style.

  • Not everyone’s applauding: MPs are raising eyebrows over supply chain practices, calling for greater scrutiny as the fast-fashion giant eyes the London Stock Exchange.

Why it matters: Shein’s sky-high UK revenues and looming IPO could make it a fashion juggernaut on British soil, leaving competitors in its dust. But with MPs raising pointed questions about supply chains and ethics, it’s clear the company won’t be sashaying into London without scrutiny. Whether it’s high profits or low prices, someone’s always paying the price—just ask Parliament.

The summary: SumUp's gearing up for a potential $9bn valuation, boosting revenues, expanding operations, and keeping small merchants hooked, all while prepping for a shareholder payday with Goldman Sachs on the side!

The details:

  • SumUp's revenues rose by 26% in 2023, hitting €188 million (£156 million), though a bit of a breather from last year's 50% growth sprint.

  • Prepping for a potential $9bn valuation, SumUp's enlisted Goldman Sachs to explore a share sale, with founders possibly cashing in some chips.

  • Merchant fees and card reader sales are the bread and butter here, with a 50% surge in reader sales alone boosting their payments sector stronghold.

  • SumUp's beefing up its operations, adding more staff, increasing share capital, and securing €1.5bn in loans – all setting the stage for future expansion.

Why it matters: SumUp is strutting toward a $9bn valuation, showing it’s still got plenty of swagger despite slowing growth. By boosting revenues through merchant fees and card readers, it's keeping small businesses hooked while plotting a shareholder payday with Goldman Sachs. With fresh cash, extra staff, and more capital in its pocket, SumUp’s clearly in the mood for a bigger slice of the payments pie.

The summary: With the Barclay family poised to hand over Very Group amid a flurry of banking interest and potential buyers like Carlyle, the online retail scene is about to get a thrilling makeover as the old guard makes way for some fresh talent!

The details:

  • The Barclay family, having already lost control of The Daily Telegraph, is now eyeing an exit from their online shopping empire, Very Group, with Barclays, JP Morgan, and Morgan Stanley hired to explore sale options.

  • Very Group, which boasts 4.5 million customers and a £2.15bn annual turnover, might soon find itself in new hands, with insiders speculating a potential £2.5bn price tag, thanks to its thriving retail and finance arm.

  • Carlyle, a global investment giant, is tipped as the likely front-runner to take control, having already extended Very Group's debt maturity earlier this year. A full or partial sale is on the cards.

  • Meanwhile, the Barclays' assets are shrinking rapidly, having lost Yodel, and with parts of Very Group’s debt pile already entangled in past financial deals – proving even the wealthy can’t escape a bad credit day!

Why it matters: The Barclay family’s exit from Very Group could spark a game of corporate musical chairs, potentially reshaping the online retail landscape and giving Carlyle a larger slice of the pie. With its robust customer base and innovative financial services, Very Group is not just a shopping destination but a juicy asset that bidders are likely to fight over, much like a scrum at a rugby match. As the Barclays’ empire crumbles like a soggy biscuit, it’s clear that even the most established families can find themselves dodging the financial bullet, making way for fresh contenders in the retail arena.

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