（Singapore, 04.09.2025）In a stunning display of investor confidence and market momentum, Xiaohongshu, the rapidly ascending Chinese social media platform known in the US as RedNote, has seen its valuation surge by an astounding 19% in just three months, reaching a staggering $31 billion.
This valuation milestone, which underscores intense global demand for a “Chinese equivalent to Instagram,” has set the tech and finance worlds abuzz and placed the company firmly in the spotlight as a formidable competitor to industry giants like TikTok.
The remarkable valuation jump was brought to light through confidential portfolio documents circulated by a vehicle of GSR Ventures Management Co., a leading venture capital firm.
These documents, reviewed by Bloomberg News, logged the fund’s share transactions in the first half of 2025 and revealed that Xiaohongshu’s stock comprised an impressive 92% of the fund’s total assets by the end of June. This was a slight increase from the previous quarter, a detail that, according to Bloomberg’s calculations, pointed to a significant leap in the social media company’s value from an already hefty $26 billion in the March quarter.
While a GSR spokesperson declined to comment and Xiaohongshu representatives did not respond to an emailed query, the hard numbers from the transaction documents speak volumes about the company’s soaring market appeal.
Xiaohongshu’s sudden rise to prominence comes at a pivotal moment in the global tech landscape. With TikTok facing potential threats of a ban in the United States, investors are actively seeking new platforms to capture the lucrative social media and e-commerce markets.
RedNote, with its unique blend of lifestyle content, social sharing, and integrated e-commerce features, has emerged as a compelling and viable alternative. Its growing traction among international investors is further bolstered by the Chinese government’s recent pledge to provide robust support to private firms, a move that has significantly revived confidence in the country’s dynamic startup ecosystem. This policy shift has created a fertile ground for companies like Xiaohongshu to thrive and attract substantial capital, signaling a new era of growth for China’s tech sector.
The list of investors flocking to Xiaohongshu is as impressive as its valuation. GSR Ventures, a firm founded in 2004 with $3.7 billion in assets under management, has a proven track record of backing over 100 successful companies, including Chinese ride-hailing titan Didi Global Inc. and cutting-edge robotics company Horizon Robotics.
The specific GSR fund involved in the latest transactions counts some of the world’s largest pension funds and top-tier US university endowments among its limited partners, highlighting the high-caliber capital that is betting big on the company’s future.
Beyond GSR, Xiaohongshu’s early backers read like a who’s who of the venture capital world. The company, which was co-founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang, received early support from notable firms such as ZhenFund, Tiantu Capital, and GGV Capital, which has since undergone a structural split into Granite Asia and Notable Capital.
The continuous backing from these industry heavyweights, from its nascent stages to its current explosive growth phase, underscores the strong conviction held by savvy investors in Xiaohongshu’s long-term potential.
The recent transactions reveal a shifting landscape of players in the game. In the first half of 2025, new investors in the GSR vehicle included funds managed by LGT Capital Partners, which is privately owned by the Princely Family of Liechtenstein, and Merit Asset Management Ltd. Their entry into the fund at this critical juncture signifies a strategic move to secure a stake in one of the world’s most promising tech companies. Conversely, funds managed by StepStone Group sold down their positions, a common practice in the fluid world of venture capital secondaries.
Representatives for LGT, StepStone, and Merit all declined to comment on the matter, maintaining the discreet nature of these high-stakes deals.
IPO Speculation Heats Up
With its valuation now surpassing the $30 billion mark, many investors are speculating that an imminent public listing is on the horizon for Xiaohongshu. An Initial Public Offering (IPO) would not only provide liquidity for its early backers but also offer a direct pathway for public investors to participate in its growth story.
As the company continues to expand its user base and commercial offerings, a public debut could solidify its position as a global leader in the social media and lifestyle content space. The recent surge in valuation is not merely a financial blip; it is a clear and powerful signal that the market views Xiaohongshu as a company with extraordinary potential, capable of shaping the future of digital content consumption and e-commerce on a global scale.
