As per Bloomberg, Shein may reach a $100 billion valuation with funding from General Atlantic.
Despite no physical stores, Shein pumps over 6,000 new items daily.
However, if they successfully receive the funding, its value will double that of the Uniqlo owner.
Additionally, Shein shows no signs or plans for an IPO.
Shein’s $100 billion valuation and others
As per data provider CB Insights, the General Atlantic funding would make Shein the world’s most valuable startup.
The funding will put Shein ahead of SpaceX and ByteDance Ltd.
Not only General Atlantic Shein is seeking investment from various potential investors.
Shein also seeks valuation more than the combined worth of high-streets staples Hennes & Mauritz AB and Inditex SA’s Zara.
Shein’s journey to a $100 billion valuation
Launched in 2012, Shein grew popular among low-cost suppliers in China.
Furthermore, the pandemic didn’t seem to slow down the company, as it collaborated with Katy Perry and Lil Nas X to gain popularity among Gen Z shoppers outside China.
While the pandemic halted the world, their sales tripled to $10 billion in 2020.
Additionally, consumers across the globe increased purchases via computers and phones.
The surge in sales led Shein to become the biggest web-only fashion brand globally.
As per Pitchbook, Shein had a valuation of $15 billion in 2020.
Shein’s impact on the environment
As per the United Nations Environment Program, fashion is responsible for nearly 10% of global carbon dioxide output.
Furthermore, the $100 billion valuations of the company mask the severity of the fast fashion on the environment.
However, the company has not commented on its carbon footprint in light of its heavy reliance on petrochemicals generated from oil.
Additionally, the company is also responsible for a fifth of the 300 million tons of plastic produced each year globally.
Nevertheless, in 2021 they said in a “Sustainability and Social Impact Report” that fashion has an undeniable impact on the planet’s health and strives for zero waste.
Shein also said they would announce its goal by the end of the year.
Moreover, in December, it donated a $10 million fund to help global NGOs aiming at empowering entrepreneurs, ensuring animal health and welfare, promoting recycling, and supporting underserved communities.
Shein’s aim to enter the U.S.
In February, The House of Representatives approved the America Competes Act.
The act prevents Chinese companies from enjoying current exemptions that allow tariff-free imports of packages under $800.
It also faces pushback from U.S. lawmakers in Washington who are considering legislation that would hinder sales in the U.S.
However, the Senate passed a bill without that change.
Lawmakers would soon reveal the terms of the final version.
Additionally, Shein announced the opening of distribution centers in Indiana employing 850 workers.
In hopes of entering the U.S. market, Shein also agreed to offer fellowships to Indiana University’s business school students.
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