XIAOHONGSHU’S valuation surged 19 per cent to US$31 billion in just three months during recent transactions via a major fund, underscoring the intense investor demand for a Chinese-equivalent to Instagram.
The valuation came to light through portfolio documents distributed by a GSR Ventures Management vehicle, which logged shares of the fund changing hands in the first half of 2025.
Xiaohongshu comprised 92 per cent of the fund’s total assets as of June’s end, a slight rise from the previous quarter, according to documents reviewed by Bloomberg News.
The portfolio’s stated net asset value implied a big jump for the social media firm from US$26 billion in the March quarter, according to Bloomberg calculations.
Xiaohongshu – known in the US as RedNote – emerged this year as a viable competitor to TikTok, which faces threats of a ban in the US. It garnered traction among investors following the Chinese government’s pledge to support private firms, reviving confidence in the country’s startup scene.
A GSR spokesperson declined to comment, while Xiaohongshu representatives didn’t respond to an emailed query.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
GSR Ventures, founded in 2004 and with US$3.7 billion of assets under management, has backed more than 100 companies including Chinese ride-hailing app Didi Global and Horizon Robotics. The GSR fund in question counts some of the world’s largest pensions and US university endowments as limited partners.
Other early backers of Xiaohongshu include ZhenFund, Tiantu Capital and GGV Capital, which has since split into Granite Asia and Notable Capital.
Some investors anticipate an imminent public listing for Xiaohongshu, which was co-founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang.
In the first half, 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. Investors that sold down positions included funds managed by StepStone Group.
Representatives for LGT, Stepstone and Merit declined to comment. BLOOMBERG
