TechFlow reported on June 17, citing The Wall Street Journal, that Chinese lifestyle and video-sharing platform Xiaohongshu is preparing for a Hong Kong listing as early as the end of this year. According to the report, major investors are seeking to set the company’s valuation at more than $70 billion. The company was previously valued at over $50 billion in recent private secondary market transactions.
From Shopping Guide App to Major Social Platform
Xiaohongshu was founded in 2013 by Mao Wenchao and Qu Fang. It began as a shopping guide application and has since developed into one of China’s most influential social media platforms. Its current identity, as described in the report, spans lifestyle content and video sharing.
The report also noted that Xiaohongshu is expected to generate more than $3 billion in net profit this year. The planned Hong Kong IPO, the target valuation above $70 billion, the recent private secondary market valuation above $50 billion, and the expected annual net profit of more than $3 billion are the key figures included in the listing-related information.