Shein raises $2B at lower valuation
- Kimberly Chin, author of Axios Pro: Retail Deals
Photo: Yuichi Yamazaki/AFP via Getty Images
Shein, the online fashion behemoth, raised $2 billion in its latest funding round, bringing its valuation to around $66 billion which is about a third of what it was last year, the Wall Street Journal reports, citing sources familiar.
Why it matters: Valuation has been a sticking point for dealmakers, especially as tech-company share prices have fallen.
Details: Shein’s latest round was led by Sequoia Capital, General Atlantic and Mubadala, the United Arab Emirates sovereign wealth fund.
- Existing investors were given more shares in the company so that they can maintain the size of their stakes, WSJ said, per sources.
Flashback: How times have changed. Shein was valued at $100 billion a year ago.
Context: The fast-fashion retailer rose to prominence during the pandemic, and is estimated to have generated about $23 billion in revenue last year, the WSJ reports.