Fast-fashion giant Shein raises $1 billion at $100 billion valuation
Shein, the Chinese fast-fashion juggernaut, raised $1 billion round at a $100 billion valuation, a source briefed on the matter confirms to Axios, adding that the funding was put together over the last several months.
Why it matters: This create a company worth more, at least on paper, than established heavyweights like Inditex, the parent of Zara, or H&M.
- Investors include General Atlantic.
- Bloomberg was first to report the company was raising at a $100 billion valuation.
Details: Shein's revenue was pegged at approaching $16 billion in 2021, according to Reuters.
Catch up fast: Shein revived its plan in January for an IPO, only to shelve it a month later due to market uncertainty, Reuters wrote.
Between the lines: The retailer mastered the formula of copying popular fashions, then producing them in a matter of days and selling them cheaply.
- The company is particularly effective when it comes to connecting with shoppers online, with billions of views on TikTok.
The bottom line: Shein may be growing quickly, but with that growth comes challenges on several fronts.
- The company, along with the entire industry, will face more pressure from consumers and regulators to improve its environmental track record.
- The e-commerce company will also need to manage its expansion so that it does not become a victim of its own success (Forever 21, Topshop).