Shein, a Chinese fashion retailer to raise up to US $3 billion at a reduced valuation of US $64 billion, as per recent report.
The updated estimate is 36% less than the $100 billion valuation from the previous year.
The online retailer is aiming to close a new investment round, according to the article, with support from current investors like the sovereign fund of Abu Dhabi, Mubadala, the venture capital firm Sequoia China, and the private equity firm General Atlantic.
Shein denies the accuracy of some of the information”,” but the authorities have kept a tight lip said, a representative of the company.
The firm made about 100 billion yuan (US $15.7 billion) in sales and was valued at US $50 billion at the beginning of 2021.
Shein does not have stores in China; instead, it serves international markets. Its website receives hundreds of millions of visitors each month thanks to things like gowns for $10 and tops for $5.
Although, there have been complaints about the company’s supply chain workers’ conditions, the Worker Rights Consortium and the Business & Human Rights Resource Centre have questioned the company’s low prices and lack of transparency and how it can sell goods at such low prices.
