SHEIN, a major player in fast fashion, recently raised US $ 2 billion in a capital round, but reports claim that its overall worth has decreased to approximately a third of what it was last year.
It has been reportedly claimed that despite this additional capital, the company’s valuation has decreased to US $ 66 billion from US $ 100 billion in the previous year. According to data from Business of Apps, SHEIN’s valuation had been on a robust growth trend since 2019, when it was estimated to be worth US $ 5 billion.
The announcement follows recent attention SHEIN has received in the US, including a request to the SEC to suspend its potential application to go public and worries about the use of forced labour.
According to the report, which cites ‘people close to the company,’ the fast fashion company reported overall revenue of US $ 23 billion and net profit of US $ 800 million last year. SHEIN has also set the objective of boosting revenue this year by 40 per cent.
SHEIN gave one of its initiatives earlier this week a cash boost in order to ’empower its ecosystem of third-party manufacturing suppliers, and the workers within.’ To improve its supply chain, it will invest a total of US $ 70 million in its Supplier Community Empowerment Programme.
