Shein, the giant company disrupting the likes of Boohoo, Asos, and H&M, is going through turmoil ahead of its public listing. The fast-fashion comapny raised $2 billion at a valuation of $66 billion.
While the capital raise was huge, it also slashed the company’s valuation by over $44 billion. At its peak, the company was valued at more than $100 billion. This is a sign that the company’s growth rate is slowing.
Shein is also facing additional challenges. For example, there are concerns about its labor practices, especially among American politicians. They accuse the company of using workers and cotton from Xinjian. The company said that it sources its cotton from the US, India, Brazil, and Tanzania.
Shein has had a strong growth rate in the past few years. Its revenue jumped to over $23 billion in 2023, a few points below that of H&M and Inditex. It is a profitable company that made over $800 million in net income in 2023.
Shein has grown its brand around the world, thanks to its aggressive marketing and lower prices amid a cost of living crisis. The number of monthly American users in the platform jumped to over 23 million users.
The new $2 billion capital raise came from well-known investment firms like Sequoia, Mubadala, and General Atlantic. Shein hopes to go public in New York later this year, which will make it the biggest IPO of the year.
The post Shein, Boohoo competitor, slashes its valuation by $44 billion appeared first on Invezz.
