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Dick Thomas Johnson
According to sources close to the company, Shein, a Chinese online clothes store, has raised $2 billion in a new round of funding. The online retailer was valued at only $66 billion in the round, a third less than in the previous one, when it was valued at $100 billion, the newspaper reported. At that time, the company attracted $1 billion to $2 billion.
Anonymous investors told to the newspaper that the undervaluation would allow Shein the chance to boost its market value in the event of an IPO. According to the sources, Shein had $23 billion in sales and $800 million in net profits in 2022, and plans to raise its revenues by 40% in 2023.
The WSJ notes that pressure from US politicians over the company's labor and environmental standards as well as plummeting shares in technology businesses contributed to the decrease in Shein's worth. The newspaper recalled that a similar slump in the tech industry resulted in job losses, project cancellations, and a renewed emphasis on cost-cutting.
source: wsj.com
Anonymous investors told to the newspaper that the undervaluation would allow Shein the chance to boost its market value in the event of an IPO. According to the sources, Shein had $23 billion in sales and $800 million in net profits in 2022, and plans to raise its revenues by 40% in 2023.
The WSJ notes that pressure from US politicians over the company's labor and environmental standards as well as plummeting shares in technology businesses contributed to the decrease in Shein's worth. The newspaper recalled that a similar slump in the tech industry resulted in job losses, project cancellations, and a renewed emphasis on cost-cutting.
source: wsj.com
