Did Shein lose a third of its 100 billion dollar valuation?

Back in April, Shein, the enigma behemoth Chinese fast fashion retailer, was valued at 100 billion dollars. Bigger than Zara and H&M combined, it seemed the fashion giant, which had the most downloaded app in the U.S., surpassing Amazon, would continue to soar to new heights.

Shein’s colossal value came after it raised 1.5 billion dollars in a Series F funding round from three investors, General Atlantic, Tiger Global Management and Sequoia Capital China.

But the rosy valuation may have been short-lived. The Financial Times this week reported Shein’s worth may be more in the region of 65 to 85 billion dollars, after private market trading was one-third of its original value. In private markets prices are not publicly disclosed, but the FT cited people familiar with the matter, said its valuation was likely too high.

Inflation, rising operational and production costs as well as a drop in consumer confidence are some of the challenges facing fast fashion retailers, said the FT.

Shein, with its low prices and frequent drops, is fueling shoppers to refresh their wardrobes, offering an unrivalled ultra-fast turnaround of 20,000 new styles and more added each week.