According to news on February 17, in response to Bloomberg’s report that Xiaohongshu will introduce state-owned investors to help smooth the listing approval, people familiar with the matter revealed that the news is untrue. With TikTok's future in the United States uncertain, social media users have flocked to China's Instagram-like service Xiaohongshu. It is one of the few Chinese internet unicorns that has yet to go public.
Xiaohongshu has become one of Apple’s most downloaded free apps on the U.S. iPhone rankings. According to Bloomberg, Xiaohongshu is expected to achieve net revenue of more than $1 billion in 2024. Users can share photos, videos and other media, as well as view reviews and shop.
Xiaohongshu’s largest investor is in talks to sell shares at a valuation of at least $20 billion, according to people familiar with the matter. The South China Morning Post reported in December that Xiaohongshu had selected underwriters and may sell shares in Hong Kong.
The company's investors include Alibaba Group Holding Ltd, Temasek Holdings Pte Ltd and Tencent Holdings Ltd. Other investors are considering selling some of their holdings, drawing interest from shareholders including Hillhouse Investments and Red Mountain Capital (formerly Sequoia Capital China) and potentially Temasek.