Controversial fast fashion startup Shein is eyeing to secure about $1 billion in its latest funding round, raising its value to about $100 billion, according to Bloomberg.
The funding round, if successful, will take Shein’s value to more than that of H&M and Zara combined.
Bloomberg said the retailer is currently in talks with potential investors, including General Atlantic. According to Forbes, the two previous funding rounds of Shein in 2019 and 2020 were valued at $5 billion and $15 billion respectively. In 2020, the Chinese online fashion retailer recorded a revenue of $10 billion, making it the world’s largest online fashion brand.
Early last year, the company was estimated to be worth about $50 billion, per Reuters. Shein’s founder and CEO, Chris Xu, has recently become a permanent resident of Singapore, looking to prepare for offshore IPOs. Last month, Shein’s plan to list in the US was reportedly put on hold due to volatile capital markets linked to Russia’s invasion of Ukraine.
Since its interception, Shein has been facing a series of claims relating to environmental issues, human rights violations and intellectual property theft. Last month, the company defended itself against a complaint to Australia’s advertising regulatory body over inappropriate, overtly sexual imagery on its website, with one photo ruled too confronting and excessive.