Fast-fashion retailer Shein is worth as much as SpaceX

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Shein just nabbed a gigantic $100 billion valuation in its most recent funding round, per the WSJ. The fast-fashion brand is best known for turning that matching set you saw on TikTok into an affordable dupe within three days—and then partnering with influencers like Addison Rae to promote it.

Shein’s reported $100 billion valuation means…

  • It’s worth more than H&M and Zara combined.
  • It’s worth as much as SpaceX and $5 billion more than the payments giant Stripe.

In other words, it might be time to tear up the narrative about young consumers opting for sustainable clothing over fast fashion, which has been criticized for the environmental impact of its heavy use of plastic and petrochemicals.

The backstory: Founded in 2008, the online retailer (it doesn’t have a single store) was a tiny operation based in Nanjing, China, that specialized in wedding dresses. But then it expanded its focus to women’s fashion and had a better pandemic than tie-dye, surpassing its rivals—Forever 21, H&M, and Zara—in terms of sales this summer, according to Earnest Research. It also grew its valuation from $15 billion to $100 billion in the span of 20 months.

Looking ahead…Morgan Stanley predicts Shein could pull in $20 billion in revenue this year, making it the fourth-largest apparel company in the world by sales.—JW