Former SoftBank executive Marcelo Shein to head Latin America

A signature hire that could accelerate global expansion by one of the world's most valuable startups, Shein plans to appoint former SoftBank Group Corp. executive Marcelo Claure to run its Latin American business.

A person familiar with the matter said Claure, who was once a lieutenant of SoftBank founder Masayoshi Son, will lead the region's operations. The former SoftBank chief operating officer has a roughly $100 million personal investment in the company, a person who was not identified as discussing a private deal.

The appointment is unusual given Claure's track record as a telecom executive, SoftBank COO and tech financier. In 2022, the Bolivian billionaire left SoftBank and moved closer to his roots, leasing office space for an investment outfit in Miami. The hiring may reflect Shein's aggressive push into new territories, building on its success selling cut-price apparel to Western consumers.

Shein representatives didn't respond immediately to requests for comment. Claure was first reported by the Wall Street Journal.

An April 2022 funding round put its valuation at $100 billion - more than Hennes Mauritz AB and the firm behind Zara combined. Its backers include Tiger Global and Sequoia China.

Secondary trades in July indicated that the company was still worth $70 billion, despite concerns about slowing growth. Virtually all of Shein's sales are in China. In the US, it has an estimated 40% stake in the fast-fashion industry. In 2021, sales hit $16 billion, up from $10 billion in 2020.

Claure had a $2 billion fortune as a deputy to Son before leaving the firm last year after a contentious split from his onetime mentor. He was known for leading the effort to clean up one of SoftBank's most spectacular missteps - its investment into WeWork as well as spearheading Sprint Corp. He also led SoftBank's investment efforts in Latin America, one of its more successful funds. He is establishing his own investment firm while awaiting the end of his non-compete clause.

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