Fashion Platform SheIn Reportedly to Raise USD 1 Bn at USD 100 Bn Valuation

China’s fast-fashion e-commerce company SheIn is reportedly in talks with potential investor General Atlantic to garner USD 1 billion at a valuation of around USD 100 billion.

Existing backers of the startup include Tiger Global Management, IDG Capital, and Sequoia Capital.

SheIn is the second-largest shopping app in the US in terms of downloads in 2021, up 68% year on year, according to application analysis company Apptopia. Downloads of the top 1 app Amazon, under Amazon.com (AMZN: Nasdaq), registered a 2.4% decrease during the same period.

The secret of SheIn’s success lies in a combination of data-driven design and a highly effective supply chain. The company operates a network of small workshops in China’s southern city Guangzhou to cut its storage cost.

The online retail platform is eyeing an opportunity to establish a holding company in Singapore to sidestep China’s strict rules for offshore initial public offerings.

In recent years, SheIn has also come under fire for a lack of transparency in its supply chain and potential environmental pollution.

Globally, SheIn is the second-most downloaded shopping application in 2021. Shopee from Singapore ranks first, and Indian fashion marketplace Meesho takes the third place, followed by Amazon.

Meesho closed its USD 570 million Series F financing round on September 30, 2021, led by Fidelity Management and B Capital.