Chinese fast-fashion company Shein has reportedly raised between $1 billion and $2 billion in a new funding round, giving the company a valuation of $100 billion, per The Wall Street Journal.
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At a $100 billion valuation, Shein’s tied for the third-most valuable private company in the world, according to The Crunchbase Unicorn Board. It’s only behind ByteDance and Ant Group, and tied with SpaceX. It’s also valued at more than some publicly traded software companies like Snowflake and Atlassian.
The company’s model has made it popular among young shoppers. It sells a wide variety of trendy clothes and home goods at incredibly low prices. While the quality of the clothes isn’t exactly top notch (it is fast fashion), that hasn’t deterred shoppers from flocking to the site.
“Shein hauls,” where shoppers show off their purchases, are common on YouTube and TikTok, and the company could generate $20 billion in revenue in 2022, per a Morgan Stanley report cited by The Washington Post. Shein also relies on data to produce the season’s trendiest styles, and tax loopholes also help the company’s bottom line, per Bloomberg.
The company’s also gotten some heat for some of its business practices. Fast-fashion brands have long been criticized for their environmental impact, and Shein is no different. And the company has been accused of violating labor laws.
General Atlantic, along with Sequoia Capital China and Tiger Global Management participated in the funding round, per the Journal.
Shein last raised a a round in August 2020, a Series E, bringing its total funding to more than than $553 million. Bloomberg first reported that Shein was in talks to raise money at a $100 billion valuation.
Illustration: Li-Anne Dias
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