Shein is considering reducing the effective cost basis for select late-stage investors ahead of its planned Hong Kong IPO, a move that essentially acknowledges what everyone on the cap table already knows: the company is worth a lot less than it used to be.
The Singapore-based fast-fashion retailer, which once commanded a valuation near $100 billion during a 2022 funding round, is now targeting an IPO valuation of roughly $40 billion. That’s a 60% haircut. For investors who wrote checks at the peak, this “cost reset” is less a generous gesture and more a survival mechanism to keep them from torpedoing the listing entirely.
The numbers tell a sobering story
Shein’s valuation trajectory reads like a chart crypto investors know all too well. The company hit approximately $98 to $100 billion in 2022, slid to $64 to $66 billion across 2024 funding rounds, and is now eyeing an IPO target between $40 and $50 billion. Some investors are reportedly pushing for as low as $30 billion.
The financial performance explains the markdown. Shein’s 2025 revenue came in at roughly $41.8 billion, which sounds impressive until you realize it represents just 8% year-over-year growth. For context, the prior year saw 20.7% growth on revenue of $37 billion. Deceleration at this scale tends to compress multiples quickly.
