As Shein lays the groundwork for an eventual US initial public offering, sources say the company has told prospective investors that it’s aiming for a valuation of as much as $90 billion — far exceeding how the fast-fashion giant is valued in private trades, according to Bloomberg.
The timing of the IPO remain uncertain, given volatile markets.
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In private trades, Shein’s valuation has dropped below the $66 billion it got in a funding round in May, sources said. Stakes that have recently changed hands in the secondary market valued the company at around $50 to $60 billion.
While valuation in private trades doesn’t necessarily reflect the company’s actual valuation, the gap underlines investor concerns over Shein’s challenges — which range from intensifying competition, to allegations of copyright thefts, and potential use of forced labor.
Shein was the world’s third most valuable startup in 2022, when a funding round valued the company at $100 billion. Its valuation has since dropped, along with other startups and technology companies, as investors grew wary toward risk assets amid uncertain economic outlook and higher interest rates.
According to Bloomberg, deliberations at Shein are ongoing and no final decision has been made regarding Shein’s IPO, including its valuation and timing.
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