The valuation of the Chinese online store Shein during the new investment round fell by a third

The valuation of a Chinese online store fell by a third – from $100 billion to $66 billion – in a new $2 billion investment round. The revaluation of the business was affected by US demands to check the store for the use of forced labor.

The valuation of the Chinese online store Shein during the new investment round fell by a third

Chinese online store Shein has raised $2 billion in a new investment round. About it writes The Wall Street Journal.

During the round, Shein’s business valuation fell 34%. In 2022, the store was valued at $100 billion, but now it is worth $66 billion. The revaluation was influenced by the US demand to check Shein for the use of forced labor by the Uighurs (a Turkic indigenous people of the Xinjiang Uygur Autonomous Region of China).

Investors believe that the undervaluation will allow Shein to increase its market value when going public. According to the sources of the newspaper, Shein received $23 billion in revenue in 2022 with a net profit of $800 million.

In May 2021, Shein became the most popular app for buying clothes online. It has over 100 million installs on Android.

Cover photo: VicVa / Shutterstock

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Source: RB.RU by

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