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Who Owns Xiaohongshu? A Comprehensive Look at the Platform's Ownership and Investment Landscape

Xiaohongshu, also known as REDNote, is a popular social media platform that has gained significant traction in recent years. Many users and investors are curious about the ownership structure of this platform. Here’s a detailed look at who owns Xiaohongshu and its investment landscape.

Founders and Management

Xiaohongshu was founded in 2013 by Mao Wencao and Qu Fang in Shanghai. The company is independently operated and managed by its founders and management team. The parent company of Xiaohongshu is Shanghai Xiaohongshu Information Technology Co., Ltd.

Investment Rounds and Key Investors

Xiaohongshu has completed several rounds of financing, attracting significant investment from top-tier venture capital and private equity firms. Here are some of the key investors and investment rounds:

  1. 2021 Financing Round:
    • Investors: Temasek, Tencent, Alibaba, TianTu Investment, and YuanSheng Capital.
    • Valuation: Post-investment valuation reached $20 billion.
  2. 2024 Financing Round:
    • Investors: Hillhouse Capital, Sequoia China, CITIC Capital, Boyu Capital, and DST Global.
    • Valuation: The company’s valuation is now $17 billion, a decrease of $20 billion from the previous round.

The Xiaohongshu icon seen on a smartphone on June 10, 2020. The operator of the social e-commerce app has raised another US$500 million after being forced to put its IPO plans on hold. Photo: Shutterstock

Investment Landscape

Xiaohongshu has received investments from a diverse group of investors, including:

  • True Capital: Founded by Xu Xiaoping.
  • GSR Ventures: Founded by Zhu Xiaohu.
  • YuanSheng Capital: Founded by Peng Zhijian.
  • Alibaba: One of the major investors.
  • Tencent: Has invested in multiple rounds.
  • Temasek: A significant investor in the 2021 round.

Business Growth and User Base

Xiaohongshu has seen significant growth in its user base and engagement metrics:

  • 2022 User Growth:
    • DAU: Exceeded 100 million.
    • MAU: Exceeded 260 million.
  • 2023 User Growth:
    • MAU: Reached 312 million, a 20% year-over-year increase.
    • DAU: 106 million, with a target of 140 million not met.

Commercialization and Revenue

Xiaohongshu’s revenue primarily comes from advertising and e-commerce:

  • 2022 Revenue:
    • Total Revenue: Grew by 20%.
    • Advertising: 80% of revenue.
    • E-commerce: 20% of revenue.
  • 2023 Revenue:
    • Total Revenue: $37 billion, a 85% year-over-year increase.
    • Net Profit: $5 billion.

Future Prospects and IPO Rumors

Xiaohongshu has been rumored to be planning an IPO, with the latest reports suggesting a potential listing in Hong Kong in the second half of 2024. However, the company has stated that it currently has no plans to go public.

Conclusion

Xiaohongshu is a vibrant and growing platform, independently operated by its founders and backed by a diverse group of top-tier investors. Its user base and revenue have grown significantly, and it continues to explore new opportunities in e-commerce and content creation. Whether you are a user or an investor, Xiaohongshu offers a unique and engaging platform for creativity and connection.

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