SHEIN

Investment Tagline: Leading global fast fashion e-commerce platform transforming digital shopping with 75 million active users worldwide

ABOUT SHEIN

SHEIN is a globally renowned fast fashion e-commerce company that swiftly rose to prominence as a central figure in the digital shopping arena. Founded in 2012 by Chris Xu, SHEIN established a platform that streamlines how consumers access the latest fashion trends, transforming the digital shopping experience. The company has catalyzed innovative style choices and enriched the online fashion landscape, with its quick turnaround on fashion trends making it a go-to destination for fashion-forward consumers worldwide.

SHEIN has achieved remarkable growth, reaching 75 million annual active shoppers worldwide as of 2022, with over 200 million app downloads in 2022 alone, making it the most popular app of the year. The company captured a dominant 50% market share in the US fast fashion market by November 2022, surpassing H&M, Zara, Fashion Nova, Forever 21, and ASOS through its data-driven approach, vertical integration, and agile manufacturing.

Revenue grew from $600 million in 2016 to $23 billion in 2022 (83% CAGR), reaching $24 billion by Q3 2023, with projections of $58.5 billion by 2025. SHEIN's valuation increased 13x from $5 billion in 2019 to $66 billion in 2023, with the company reportedly aiming for a $90 billion IPO. With 11,000 employees and operations across 100+ countries, SHEIN has raised $3.0 billion to date and continues its position as a tech-infused trendsetter in fast fashion.

MAIN SOLUTIONS/PRODUCTS

KEY INVESTMENT FEATURES

• Dominant Market Position: SHEIN captured a 50% market share in the US fast fashion market by November 2022, surpassing H&M, Zara, and Fashion Nova. The platform serves 75 million annual active shoppers worldwide with 18% from the US, achieving over 200 million app downloads in 2022 (most downloaded app of the year). The company experienced 9% YoY sales growth in November 2022 while competitors declined.
• Exceptional Revenue Growth: Revenue grew at an 83% CAGR from $600 million in 2016 to $23 billion in 2022, reaching $24 billion by Q3 2023 (40% growth). The company projects $58.5 billion revenue by 2025, surpassing Zara and H&M combined. With 60% first-time shoppers, SHEIN focuses on transforming new customers into loyal repeat buyers.
• Impressive Valuation Growth: SHEIN's valuation increased 13x from $5 billion in 2019 to $66 billion in 2023, peaking at $100 billion in October 2022. The Caplight valuation at $53.2 billion and last primary at $67.0 billion demonstrate strong market positioning, with SHEIN reportedly aiming for a $90 billion IPO.
• Unique Competitive Advantages: SHEIN leverages data analytics for accurate demand forecasting and optimized production. Vertical integration provides end-to-end control over design, manufacturing, and distribution, ensuring quality, speed, and cost efficiency. Agile manufacturing translates trends into affordable products swiftly, while the extensive global network reduces costs and delivery times.

MARKET OPPORTUNITY

The fast fashion market is expected to grow at a CAGR of 11%, reaching $185 billion worldwide by 2027 from $123 billion in 2023. E-commerce and social media serve as main growth drivers, with social media generating brand awareness and excitement around new collections. Many brands have expanded to more than 100 countries, creating substantial opportunities for companies with international reach.

SHEIN's 433% user CAGR from 2017 to 2022 demonstrates successful market capture. Early growth from India and Saudi Arabia evolved to focus on Brazil, Mexico, and the US as largest markets, demonstrating successful geographic diversification and market penetration in rapidly growing economies.

STRATEGIC ADVANTAGES

Technology Advantages: SHEIN fuses fast fashion with data-driven innovation, leveraging analytics and real-time market insights for demand forecasting and production optimization. Vertical integration provides end-to-end control, while agile manufacturing swiftly translates trends into affordable products through close supplier collaboration. The company focuses on responsible sourcing, eco-friendly materials, and ethical supply chain practices.

Market Position Advantages: SHEIN's digital-first strategy targeting Gen Z through social media influencers on Instagram and TikTok propelled market share to 50% in the US. User-generated content builds brand trust, while app gamification engages younger shoppers. The extensive global network and localized operations ensure seamless experiences worldwide, with plans for a comprehensive global marketplace to compete with established platforms.

VALUATION ANALYSIS

SHEIN's valuation grew 13x from $5 billion in 2019 to $66 billion in May 2023, peaking at $100 billion in October 2022. Current Caplight valuation at $53.2 billion and last primary at $67.0 billion (August 2025) reflect market adjustment. SHEIN reportedly aims for a $90 billion IPO, demonstrating confidence in long-term growth potential.

At current valuation, SHEIN trades at approximately 2.8x revenue relative to its $23 billion (2022) and $24 billion run rate (Q3 2023). With revenue projected at $58.5 billion by 2025 and 83% CAGR from 2016-2022, the company demonstrates sustainable growth. SHEIN has raised $3.0 billion to date, providing capital for international expansion, technology development, and marketplace initiatives.

FINANCIAL PERFORMANCE

Revenue grew from $600 million in 2016 to $23 billion in 2022 (83% CAGR), surging 40% in the first nine months of 2023 to $24 billion and tracking toward $32-33 billion by year-end. The company projects $58.5 billion by 2025, surpassing Zara and H&M combined.

The user base grew at 433% CAGR from 2017 to 2022, reaching 75 million annual active shoppers with 18% from the US. The app was downloaded over 200 million times in 2022 (most downloaded app). With 60% first-time shoppers, SHEIN focuses on conversion to loyal customers across diverse geographies including Brazil, Mexico, and the US as largest markets.

MANAGEMENT TEAM

Chris Xu, Founder and CEO: Chris Xu founded SHEIN in 2012 and has been the visionary force behind the company's journey to a $66+ billion valuation. With a background in search engine optimization and unconventional business strategies, Xu steered SHEIN to global prominence through data-driven approaches and vertical integration. Despite preferring a low-profile public presence, his impact on fashion e-commerce is indisputable, transforming how millions access affordable, trend-forward fashion globally.

SELECT INVESTORS

SHEIN has backing from premier investors including General Atlantic, Mubadala Investment Company, Tiger Global Management, Sequoia Capital China, IDG Capital, JAFCO Asia, Brookfield, and Shunwei Capital. This syndicate represents leading growth equity and sovereign wealth funds with proven track records in scaling global consumer and technology companies. The company's ability to raise $3.0 billion culminating in a $67.0 billion valuation (and $53.2 billion Caplight valuation) demonstrates sustained institutional support and validates SHEIN's market leadership in the rapidly expanding fast fashion e-commerce sector.