Xiaohongshu, the Chinese social media star who attracts foreign investment

This is a reversal of the trend that has not escaped notice. At Financial Times.“Xiaohongshu, China’s fastest growing social network” has just obtained the support of the American venture capital fund DST Global. Foreign investors who are betting “on the tech sector, which they have largely avoided since Beijing’s crackdown” are “rare”, notes the British economic daily.

With its 312 million monthly active users, the video and photo sharing platform, “very popular with city dwellers”, has carried out in recent weeks operations of selling shares to investors in Hong Kong, China and Singapore, which are valuing it “at 17 billion dollars” (15.7 billion euros).

Among them is the American fund DST Global, “founded by Moscow-born Israeli tech entrepreneur Yuri Milner, a former Facebook investor.”

A bet on the IPO

They “are betting that Xiaohongshu is part of the small group of Chinese unicorns” from which we can hope “IPO with a bang”, estimates the economic daily. Created in 2013, Xiaohongshu, which can be translated as “little red book”, is Indeed “become profitable in 2023”, with a turnover of 3.7 billion dollars (3.4 billion euros) and a net profit of 500 million dollars (460 million euros).

Other “unusual fact” around this success story: Xiaohongshu “benefits from the support of Tencent and Alibaba, while startups seeking fresh cash usually have to choose one or the other of the Chinese internet giants.”

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