Shein’s meteoric rise as a fast fashion e-commerce powerhouse is set to hit the public markets. The Singapore-based online clothing retailer has confidentially submitted paperwork for an initial public offering (IPO) in the United States, The Wall Street Journal first reported on Monday.
While full details remain private for now, analysts expect Shein could aim to raise billions at a valuation above $90 billion – surpassing established rivals Zara and H&M.
Earlier this year, the online clothing startup already reached a $66 billion valuation after a $2 billion funding round.
Shein’s Business Model
Backed by investors like Sequoia and Tiger Global, Shein has used data analytics, targeted batch production, and a light-asset e-commerce model to disrupt the apparel industry completely.
Based on customer demand, the company sells over 5,000 clothing items daily in minutes, significantly boosting margins.
Growing Criticism and Competition
Founded over 10 years ago in China, Shein has confronted growing criticism of potential copyright infringement and environmental impact amid its astronomical rise.
Meanwhile, emerging rival Temu – run by Chinese commerce giant Pinduoduo – presents a new competitive threat as more apparel sellers attempt to replicate Shein’s success.
Impending IPO
While risks remain, Shein’s impending IPO represents a coming-out party for the highest-valued private fashion company on earth, aiming to cement its position as the preeminent digital-first apparel retailer worldwide.
Shein may pursue one of the most eagerly anticipated public listings of any startup in 2023 when it eventually reveals IPO documents.
