The TikTok owner has been in talks about selling a single-digit stake and would prefer to sell to an existing investor, the people said. Poizon, officially known as Shanghai Shizhuang Information Technology Co., is valued at more than $10 billion, they said, asking not to be identified discussing a private matter.
The potential divestment from an interest in the Chinese e-commerce platform is progressing slowly after ByteDance revamped its investment arm earlier this year, the people said.
Deliberations are preliminary and ByteDance could still decide to keep the minority position in Poizon, the people said. Representatives for ByteDance and Poizon did not immediately respond to requests for comment.
The sale comes after the social media giant, anticipating that Beijing will soon cut deals with tech companies, disbanded its venture capital team and launched a major overhaul of its strategic investment group, Bloomberg News reported. in January.
ByteDance has ditched a number of investments and streamlined its business over the past year after the Chinese government launched a deadly regulatory crackdown that engulfed every corner of the internet, from education to fintech. and e-commerce. The company has sold its stake in Indian news aggregation operator VerSe Innovation Pvt. earlier this month, according to a report by local news outlet Mint. In February, ByteDance agreed to sell its trading app to a local brokerage, according to a stock market announcement.
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Poizon, known as “De Wu” in Chinese, launched an app in 2015 offering information on the latest fashion trends and became an online marketplace two years later, according to its website. It offers to authenticate products before they are resold, preventing users from unexpectedly buying counterfeit items.
Poizon counts Nike Inc., Adidas AG and Nintendo Co. among its partner brands, the website says. It has around 100 million monthly active users.
Rival startup StockX, a Detroit-based sneaker retailer, said its valuation jumped to $3.8 billion last April with plans for global expansion. It is working with Morgan Stanley and Goldman Sachs Group Inc. on a possible initial public offering, Bloomberg News reported.
Online sneaker marketplace Goat Group announced a $195 million funding round that more than doubled its valuation to $3.7 billion last year. He signed a sponsorship deal in April with French soccer club Paris Saint-Germain worth more than $50 million, a person familiar with the matter said.