Shein, the online fashion giant that has become a go-to destination for affordable clothes, has just completed a new funding round in which it raised $2 billion. It is estimated that the company is worth $66 billion after this round of funding, which is approximately a third less than its valuation one year ago.
The recent sell-off in tech stocks and growing concerns about the company’s labour and environmental practices are likely to blame for the decline in Shein’s valuation. Other possible causes include the recent sell-off in other tech stocks. Shein has been accused of employing labour from sweatshops and of polluting the environment with its model of conducting business in the fast fashion industry.
“The new funding will be used to help Shein expand its operations and develop new products”
Shein continues to be a significant player in the fashion industry despite the difficulties described above. The previous year, the company recorded revenue of $23 billion. It is anticipated that this year’s revenue will increase by an additional 40%. Additionally, Shein is broadening its business operations into new regions.
Shein’s ability to overcome the obstacles it is currently facing and continue on its current path of expansion is something that remains to be seen. However, the company has demonstrated an impressive ability to adjust to new circumstances and prevail over obstacles in the past, and it is highly likely that it will remain a significant player in the fashion industry for many years to come.
Shein’s success has been significantly influenced by how well-liked it is with Gen Z customers. In a survey of 7000 American teenagers, Shein was rated as the second most popular e-commerce site in 2022. Young people frequently shop at Shein because of its low costs and large selection of trendy clothing.