Shein raises $2 billion in new round of financing, valuation shrunk by one-third

It is learned that on May 17, the Wall Street Journal quoted people familiar with the matter as saying that Shein raised US$2 billion in its latest round of financing with a valuation of US$66 billion, which is about one-third less than the US$100 billion at the beginning of 2022.

It is reported that this round of financing was jointly led by Sequoia Capital, General Atlantic and Abu Dhabi sovereign wealth fund Mubadala. People familiar with the matter revealed that Shein also set a revenue target of 40% this year.

It is learned that in the past five years, as Shein's global market footprint has continued to expand, its valuation has soared from US$5 billion in 2019 to US$100 billion at the beginning of 2022, an increase of 840% in two years. But recently, Shein's valuation has dropped to US$66 billion. There are rumors that Shein plans to IPO at the end of this year, but the official has not responded.

Shein valuation 2019-2022 (US$ billion)

Most of Shein's growth has come in the past two years, with revenue increasing 398% from 2019 to 2021. In 2022, Shein's revenue reached $30 billion, up 91% from $15.7 billion in 2021.

Shein annual revenue 2016-2022 (US$ billion)

In terms of user scale, Shein's early growth mainly came from India and Saudi Arabia, but in the past two years, Brazil, Mexico and the United States have gradually become Shein's largest markets. The latest data from Business of Apps shows that Shein currently has 74.7 million active buyers, of which 13.7 million are from the United States.

Shein annual users 2017 to 2022 (mm)

The United States is Shein's second-largest market by total usage (after Brazil) and its largest market by revenue.

Shein US Annual Users 2017-2022 (mm)

Shein was downloaded 200 million times in 2022, becoming the most downloaded shopping app in the world that year. In 2021, Shein was the third most downloaded shopping app in the world, second only to Shopee and Meesho.

Editor✎ Ashley/

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