SHEIN’s Valuation Drops by a Third — Retail Bum

Fast fashion retailer SHEIN is looking to raise $3 billion at a valuation of $64 billion, which is considerably lower than the company’s previously reported valuation.

In 2022, the company raised funding at a valuation of $100 billion, 36% higher than its current valuation. The decline in valuation has come along with an aggressive increase in interest rates, which has not bore well for high growth and big tech stocks. To make matters worse, markets across the globe have seen a mass selloff due to the impact of Russia’s attack on Ukraine, which has led players such as SHEIN to hold off their U.S. listing plans.

For its latest investment round, SHEIN is in talks with existing investors, including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic, according to Reuters.

A SHEIN spokesperson, however, declined to verify the accuracy of the news.

The company’s latest investment round comes on the heels of years of rapid growth. In 2021, the company reportedly generated $15.7 billion in revenue and had a valuation of $50 billion.

That said, its path to success has been marred by controversy. The company has long been criticized for the poor working conditions of its workers and its lack of efforts to build an environmentally sustainable business model.

Originally published at https://retailbum.com on January 19, 2023.