Missguided has called in City advisers Rothschild to help it explore its sale or float options.
The review is likely to culminate in outside investment in 2018 or 2019, according to Sky News.
Missguided has expanded aggressively in recent years. It opened its first bricks-and-mortar store at Westfield Stratford last year and has more stores on the cards.
Its last full-year results saw investment hurt profits.
EBITDA plunged 53% to £2.6m, while sales rose 34%, hitting £117m, in the year to March 2016. International sales accounted for 40% of overall revenue.
Missguided said its profitability had recovered in the six months to September, with sales growing 60%.
The retailer invested significantly last year, especially in marketing, technology, infrastructure and recruitment. It also launched activewear, bridalwear, nightwear, lingerie, denim, tall, plus and petite categories.
News of Missguided exploring options emerged as it was revealed that it had been selling fur from animals such as cats under the guise of fake fur. The etailer said it was “launching an internal investigation with the relevant suppliers”.