Shein, the Chinese online fashion giant will invest 250 million euros over the next five years to support startups from EU and UK

Shein, the Chinese online fashion giant well-known in Romania for its vast selection of affordable clothing and accessories, announced on Thursday a significant commitment: it will invest 250 million euros over the next five years to support startups and fashion creators in the European Union and the United Kingdom.

Out of this generous sum, Shein will allocate 200 million euros through its new investment fund, Circularity, dedicated to supporting innovators in the circular economy within the fashion sector. The fund aims to specifically finance:

• Early-stage startups developing innovative technologies for textile recycling and other related innovations.
• Commercial partnerships and acquisitions with more mature startups that already possess production capabilities for recycled textile materials or emerging fibers.

The remaining 50 million euros will be invested to support independent brands, designers, and artisans in the EU and UK, helping them expand their online presence through Shein’s marketplace platform. The funds will also be directed towards research and development projects and pilot production carried out in Shein’s innovation centers.

Additionally, Shein plans to list on the London Stock Exchange, a decision taken as an alternative to the American stock exchanges, following controversies in the USA regarding the sourcing of products from China’s Xinjiang province. This region is known for allegations of abuses against ethnic Uyghurs by Chinese authorities.

Founded in 2008 in Nanjing, China, by Chris Xu, Shein is now headquartered in Singapore. In 2023, the company was valued at 66 billion dollars following a funding round and initially planned to list on the American stock exchange the same year, with a market valuation estimated at 90 billion dollars.