Shein valued at $26bn in IPO at a quarter of its peak

Chinese e-commerce giant Shein has gone public, raising $1.7bn in an initial public offering (IPO) with a valuation of $26bn. This is a quarter of the $100bn valuation Shein was once valued at, according to its last pre-IPO disclosure in July. The company, known for selling mass-produced apparel and lifestyle products at low prices, announced a $99m quarterly net loss in July.

Shein was the world's third most valuable start-up in 2022, raising money at a $100bn valuation. However, its current revenue of $41.8bn in 2025 is down from $3.4bn the previous year, with full-year sales expected to rise to $44.3bn next year and net income projected at $1.7bn. The downward trend can be attributed to rising protectionist trade barriers from the US and EU, who are trying to protect domestic retailers and curb unsafe goods.

The US eliminated a tariff loophole in May, while the EU introduced a new €3 levy on low-value packages imported into the bloc. Shein is also facing competition from its Chinese retail Temu, which reported $15.7bn in revenue. Despite the challenges, Shein plans to use its IPO raise to improve technological capabilities, brand awareness, and global presence.