Xiaohongshu Raises $500 Million in New Funding Round

Chinese social media platform Xiaohongshu has completed a new round of funding, led by existing shareholders Temesek and Tencent, with contributions from Alibaba and others.

“The current round of financing mainly stems from existing shareholders who increased their stakes in the company,” a spokesperson for Xiaohongshu said.

Though the company was not able to disclose the financial details of the new funding, a person with knowledge of the deal confirmed to BoF that the round raised $500 million in new capital, bringing Xiaohongshu’s valuation to $20 billion.

The platform has become and increasingly vital avenue for fashion and beauty brands to reach China’s Millennial and Gen-Z population, young women in particular, who make up an estimated 70 percent of Xiaohongshu’s audience. They frequent the platform for advice, to discover new trends and products and for lifestyle inspiration across a multitude of categories.

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How Social Media Is Changing Physical Retail

On any given weekend, Shanghai’s Wukang Road, located in the heart of the city’s former French Concession, will heave with locals and visitors in their most stylish outfits. Street style photographers working for dedicated social media accounts on Xiaohongshu frequent the historic street searching for subjects.