Backers of China’s social media platform Xiaohongshu, a TikTok competitor, are reportedly looking to sell part of their stake in the company, with potential deals valuing it at $20 billion or more, according to Bloomberg News. Key shareholders, including GGV Capital, GSR Ventures, and Tiantu Capital, are in talks with existing investors like HongShan Capital Group and Hillhouse Investment, as well as Tencent, which is considering increasing its stake in the company.
Xiaohongshu, which translates to “little red book,” is similar to Meta’s Instagram in that it allows users to share curated content through photos, videos, and text. The platform has over 300 million users and was valued at $17 billion following its latest funding round in July 2024.
This development comes amid TikTok’s planned shutdown of its U.S. operations, as a federal ban is set to take effect soon. The situation highlights the growing competition between social media platforms in China and internationally.
