Xiaohongshu, backed by TENCENT and BABA, Achieves First Profit of $500M

Xiaohongshu, a Chinese social media platform similar to Instagram, reported its first-ever profit last year, recording a net profit of approximately $500 million and revenue of about $3.7 billion. This marks a significant turnaround from the previous fiscal year when it experienced a loss of around $200 million with $2 billion in revenue.

Despite challenges in the industry and uncertainties about its future, Xiaohongshu remains valued at about $20 billion, following its last fundraising round in 2021. Investors include TENCENT, BABA, GGV Capital, and Sequoia.

However, the absence of a clear path to an IPO raises concerns among investors about the platform's long-term prospects.