Topline
Shein has slashed its valuation to less than $30 billion, according to multiple reports, a nearly 75% reduction from the value it boasted just four years ago as it prepares to go public in Hong Kong as soon as this month.
Shein plans to go public this month.
Photo by Jakub Porzycki/NurPhoto via Getty Images)
Key Facts
Shein’s value will likely be around $25 billion for its initial public offering, two unnamed sources told Reuters, with a third source saying the fast-fashion company was eyeing a valuation between $25 billion and $28 billion.
Bloomberg reported Shein is seeking a valuation between $26 billion and $27 billion, noting the company recently pulled away from a $30 billion valuation following investor pushback fueled by slow revenue growth and tariff impacts.
Shein will attempt to raise $2 billion in the IPO, Bloomberg added, noting existing shareholders could take up as much as around half the deal.
Shein is planning to go public this month and possibly as soon as this week in Hong Kong, doing so after failing to launch an IPO in New York and London within the last few years.
Big Number
$100 billion. That is what Shein was valued at in 2022, making it one of the most valuable startups in the world.
Forbes Valuation
$6 billion. That is the estimated net worth of Shein co-founder and CEO Sky Xu as of this year, falling from its peak of $11.2 billion in 2024.
Key Background
Shein, a digital fashion company offering low-priced clothing, boomed amid the height of the COVID-19 pandemic as shoppers spent more time on ecommerce sites. The company’s revenue rocketed to $23 billion by 2022. Shein’s revenue has continued growing since, but that growth has slowed. Last year, revenue grew 8% to $41.8 billion—a stark drop from the 41% and 20% jumps in revenue growth reported in 2023 and 2024, respectively. The reduction was fueled by an increase in tariffs and President Donald Trump suspending the de minimis tariff exemption for packages valued at $800 or less. Shein has also faced pressure from rival Temu, which is also based in China and offers low pricing on apparel and several other products like home goods, electronics and appliances. Shein ditched its attempt at a public offering in the U.S. in 2024 after facing backlash from lawmakers who voiced national security concerns over its links to China. When it tried to go public in London, the company failed to receive approval from the China Securities Regulatory Commission. Regulators in the United Kingdom also received concerns from watchdogs over Shein’s supply chain and its alleged connections to forced labor.