Shein faces investor pressure to cut valuation to $47b

The news: Fast fashion giant Shein is facing intensifying pressure from investors to reduce its valuation in order to get its planned UK IPO over the line, according to sources cited by Bloomberg.

The numbers: Shein has previously been valued at up to $157 billion, but may need to drastically cut that figure to $47 billion as questions around its supply chain and labour practices weigh on the company’s reputation.

The context: The high-volume, low-cost fashion retailer is viewed as one of the world’s most successful startups, and has been searching for a suitable listing location for a number of years. Shein redirected its listing energy from the US to the UK early last year after facing substantial regulatory scrutiny and political attention in the US.

In June 2024 Shein filed papers for a London IPO, but continues to struggle finding backers as enthusiasm around the company fades.