The valuation of a Chinese online store fell by a third, from $100 billion to $66 billion, during a new round of investment for $2 billion. The revaluation of the business was affected by US lawsuits.
The Chinese online store Shein has raised 2,000 million dollars in a new round of investment. The Wall Street Journal writes about it.
During the round, Shein’s business valuation fell 34%. In 2022, the store was valued at $100 billion, but is now worth $66 billion. The reassessment was influenced by the US requirement to check Shein for the use of forced labor by the Uyghurs (an indigenous Turkic people of the Xinjiang Uygur Autonomous Region). from China).
Investors believe that the undervaluation will allow Shein to increase its market value when it goes public. According to the newspaper’s sources, 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 more than 100 million installations on Android.
Author:
Kirill Bilyk
Source: RB
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