Xiaohongshu Denied IPO Speculation

Chinese social media and e-commerce platform Xiaohongshu, or Little Red Book, is poised to surpass its initial net profit projection of $50 million, with estimates now reaching around $500 million for this year, as reported by Bloomberg.

Despite rumors of an imminent initial public offering (IPO) in Hong Kong in late 2024, Xiaohongshu has denied any immediate plans to go public.

It’s worth highlighting that Xiaohongshu, alongside several other internet platform companies, initiated investor roadshows in the United States in the first half of 2021. These companies boasted monthly active users (MAUs) in the tens or even hundreds of millions.Towards the end of 2021, Xiaohongshu secured a round of financing, primarily through the increase of existing shareholders, resulting in a post-investment valuation exceeding $20 billion. Sequoia China had acquired shares in Xiaohongshu at a valuation of about $14 billion through a series of transactions earlier this year.