Shein Raises $2 Billion in Funding, Targets 40% Revenue Growth in 2023

Renowned for its extensive selection of new styles offered at ultra-low prices, Shein experienced a temporary slowdown in sales during the summer and fall of 2022, following a period of rapid growth.

Sonu Vivek
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Chinese fast fashion giant Shein, now headquartered in Singapore, has secured an impressive $2 billion in funding, as reported by media sources. This funding round has valued the company at $66 billion, a figure significantly lower than its previous valuation of $100 billion just a year ago. Leading the investment are prominent firms such as Sequoia Capital, General Atlantic, and Mubadala, the sovereign-wealth fund of the United Arab Emirates.


Shein's Funding Round and Valuation

Renowned for its extensive selection of new styles offered at ultra-low prices, Shein experienced a temporary slowdown in sales during the summer and fall of 2022, following a period of rapid growth, according to analysis by BoF using Earnest Analytics data. Despite this setback, sources cited in a Wall Street Journal report anticipate a 40% revenue increase for Shein in 2023. Notably, the company achieved impressive sales figures of $23 billion last year.

Sales Slowdown and Anticipated Revenue Growth


While Shein faced a temporary decline in sales, it expects to rebound strongly with a projected 40% revenue growth in the upcoming year. This positive outlook is a testament to the company's resilience and its ability to adapt to changing market dynamics. By continuously introducing new styles and maintaining affordable pricing, Shein aims to sustain its competitive edge and drive further growth in the fast fashion industry.

Regulatory Scrutiny and Market Recovery Potential

Shein is currently under scrutiny by American lawmakers, with regulatory concerns arising from geopolitical tensions between the United States and China. A lower valuation resulting from the funding round could potentially provide an opportunity for Shein to regain market value through an initial public offering (IPO), as reported by various media outlets. In response to inquiries from Congress, Shein and other international retailers must ensure compliance with US legislation that prohibits the use of cotton sourced from China's Xinjiang region in their supply chains.


Competition from Rival Temu

In addition to regulatory challenges, Shein faces increased competition from Temu, a shopping app developed by Chinese online marketplace Pinduoduo. Temu, which offers similarly affordable prices and a vast range of products, poses a significant threat to Shein's market share. As the battle for customers intensifies, Shein must continue to innovate and differentiate itself to maintain its position as a leader in the fast fashion industry.

Expansion into US and European Markets


Shein has strategically expanded its operations by establishing new warehouses and manufacturing facilities in the United States and Europe. This move allows the company to enhance its distribution capabilities and cater to the growing demand from customers in these regions. By localizing its operations, Shein aims to provide faster shipping times and improve overall customer satisfaction, solidifying its position as a global player in the fast fashion market.

Shein's Positive Outlook for the Future

Peter Day, Shein's global head of strategic communications, expressed enthusiasm about the company's trajectory. In a recent interview with BoF, he stated, "We're very excited about the direction of the business. We see ourselves as being well-positioned in the macroeconomic environment." 

Shein remains optimistic about its prospects, leveraging its strong brand, and diverse product offerings.