Total amount raised
$917.7 Million
Latest funding date
7/1/2024
Location
Xiaohongshu has successfully raised funds through nine distinct funding rounds, attracting notable investors such as Boyu Capital, CITIC Capital Holdings, and DST Global. The platform, known for its unique blend of social media and e-commerce, has also made 13 investments, with the most recent being in RheoFit during a Seed Round.
Keep reading to explore the intricacies of Xiaohongshu's fundraising journey and the investors backing this innovative platform.
What Is Xiaohongshu?
Xiaohongshu, also known as Little Red Book, is a prominent social media and e-commerce platform founded in 2014. The company is headquartered in Shanghai, China, and operates within the e-commerce, mobile apps, shopping, and social media industries.
With a workforce of 1001-5000 employees, Xiaohongshu allows users to share product reviews and shopping experiences, blending social networking with e-commerce. The platform covers various lifestyle interests, including fashion, food, cosmetics, movies, career, emotions, household products, gaming, travel, and fitness.
How Much Funding Has Xiaohongshu Raised?
- Seed Round
- Amount Raised: CNY 150,000
- Date: September 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the platform and develop the initial product.
- Series A
- Amount Raised: CNY 141,031
- Date: August 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the user base and enhance platform features.
- Series B
- Amount Raised: USD 17,500,000
- Date: June 2015
- Lead Investors: Notable Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market reach.
- Series C
- Amount Raised: USD 100,000,000
- Date: March 2016
- Lead Investors: Tencent
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and technological advancements.
- Series C
- Amount Raised: CNY 994,005
- Date: January 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the platform's capabilities and user engagement.
- Series D
- Amount Raised: USD 300,000,000
- Date: June 2018
- Lead Investors: Alibaba Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth and expansion into new markets.
- Series E
- Amount Raised: USD 500,000,000
- Date: November 2021
- Lead Investors: Temasek Holdings, Tencent
- Valuation at Round: USD 20 billion
- Motivation Behind the Round: To secure additional capital for growth and operations.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: September 2023
- Lead Investors: HSG
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for existing shareholders.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: July 2024
- Lead Investors: DST Global
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling and enhancing platform features.
Total Amount Raised: USD 917,635,036
Current Valuation: USD 20 billion
Key Investors
- DST Global
- Details: DST Global is a leading investment firm focused on late-stage internet companies. It has been a significant investor in Xiaohongshu, participating in multiple funding rounds.
- Investment Focus Areas: Internet, technology, e-commerce.
- Notable Investments: Facebook, Alibaba, Spotify.
- Temasek Holdings
- Details: Temasek Holdings is a global investment company headquartered in Singapore. It has a diverse portfolio spanning various sectors and geographies.
- Investment Focus Areas: Financial services, telecommunications, media & technology, transportation, consumer & real estate.
- Notable Investments: Meituan, ByteDance, Ant Financial.
- Tencent
- Details: Tencent is a Chinese multinational conglomerate holding company. It is known for its various internet-related services and products, including social networks and gaming.
- Investment Focus Areas: Social networks, e-commerce, fintech, gaming.
- Notable Investments: JD.com, Pinduoduo, Epic Games.
- Alibaba Group
- Details: Alibaba Group is a Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. It has been a key investor in Xiaohongshu's growth.
- Investment Focus Areas: E-commerce, cloud computing, digital media, entertainment.
- Notable Investments: Lazada, Ele.me, Youku Tudou.
- GGV Capital
- Details: GGV Capital is a venture capital firm that invests in technology companies in the US and China. It has supported Xiaohongshu in its earlier financing rounds.
- Investment Focus Areas: Consumer/new retail, social/internet, enterprise/cloud, frontier tech.
- Notable Investments: Airbnb, Slack, Square.
What's Next for Xiaohongshu?
Xiaohongshu stands at the cusp of significant growth opportunities. With its recent $500 million funding round, the platform is poised to expand its user base and enhance its content offerings, particularly in areas like sports, technology, and food. The shift towards video content and live streaming also presents a substantial opportunity to increase user engagement and attract new demographics.
Future fundraising prospects look promising, given the strong backing from major investors like Temasek, Tencent, and Alibaba. These funds will likely support further expansion and technological advancements, ensuring Xiaohongshu remains competitive in the rapidly evolving social e-commerce landscape.
However, the platform faces challenges such as maintaining user trust amidst regulatory scrutiny and navigating intense competition from other social media and e-commerce giants. Balancing content diversity with community coherence will be crucial for sustained growth and user retention.
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