Xiaohongshu, the social app also known outside China as RedNote, has seen its valuation rise to $31 billion following recent transactions in a fund managed by GSR Ventures. The figure reflects a sharp gain from $26 billion valuation in March, highlighting investor demand for what many view as a Chinese equivalent to Instagram. As of June, RedNote accounted for 92% of the GSR vehicle’s assets, showing how central the company has become for that fund. The move signals that investors see the app as one of the strongest bets in China’s consumer tech space.
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Founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang, RedNote has grown from a product review service into a social commerce hub with an active community. It mixes user posts, shopping features, and lifestyle content. This blend has allowed the platform to attract both a young base in China and interest from global investors. As TikTok faces pressure in the United States, RedNote is gaining attention as a possible option for users and investors looking beyond the leading short video app.
IPO Talk and Investor Mix
Meanwhile, the jump in valuation has renewed talk of a possible public listing. Some investors expect an IPO to arrive soon, especially as Beijing continues to signal support for private firms. A public debut would rank it among the largest in China’s internet sector since 2021.
RedNote’s investor base includes ZhenFund, Tiantu Capital, and GGV Capital, which later split into Granite Asia and Notable Capital. More recently, new backers, including LGT Capital Partners and Merit Asset Management, joined the GSR fund. Others, such as StepStone Group, sold down holdings. This turnover shows active positioning around the company as it nears a possible next stage.
Meanwhile, TikTok continues to deal with regulation in the United States, where lawmakers have pressed the firm’s owner ByteDance to sell the app. That creates a gap in the global market, and Xiaohongshu is well placed to benefit if TikTok’s troubles extend further.
By using TipRanks’ Comparison Tool, we lined up five stocks: three from the United States and two from China, all of which operate a social media platform. This provides investors with a broader view of each stock, as well as the sector as a whole.
