Shein, the Singapore-based fast fashion platform, is aiming for a potential U.S. initial public offering (IPO) with a target valuation of up to $90 billion, as reported by Bloomberg on Tuesday. This valuation is an increase from the $64 billion it received in a funding round earlier this year. Notably, Shein reached a valuation of $100 billion in April 2022.
The company has informed potential investors that it is targeting a listing valuation in the range of $80 billion to $90 billion, according to sources.
Founded in China over a decade ago, Shein has been a pioneer in using data analytics to predict customer demand and produce small clothing batches to minimize inventory costs.
While it has received recognition for its innovative light-asset e-commerce model, the company faces challenges related to copyright infringement lawsuits, environmental criticisms, and competition from China’s PDD-run e-commerce site, Temu.
The online retailer anticipates its net income to reach $2.5 billion this year, even amid heightened competition, as disclosed by anonymous sources. In 2019, an investor presentation indicated that the company’s net income was approximately 1 billion yuan ($137 million).
Shein was the most downloaded app of 2022 in the shopping category globally, generating 229 million new downloads across the App Store and Google Play.
It’s important to note that discussions regarding Shein’s IPO, including its valuation and timing, are ongoing, and no final decision has been reached.