China's RedNote, a TikTok alternative, sees valuation soar with backing from GSR Ventures
RedNote 's valuation surged to US$26 billion in recent market transactions via a major fund, an unusually fast ascent that underscores how the Chinese social media phenomenon is making headway against TikTok in the US.
The start-up's price tag emerged through a document from a GSR Ventures Management vehicle that showed shares of the fund changing hands. RedNote comprises 91 per cent of the GSR fund's assets, according to the internal document reviewed by Bloomberg News. The portfolio's stated net asset value as of end-March translated to a big jump in the fledgling social media firm's valuation over its last-reported US$20 billion.
RedNote – also known as Xiaohongshu, which means 'little red book' – came under the spotlight in January as
an alternative to TikTok , which faced threats of a ban in the US. The social media platform has garnered traction among investors following the Chinese government's pledge to support private firms and unwind a crackdown on its tech sector.
The latest valuation surpasses RedNote's Covid-era peak in 2021, and would be a boost for an initial public offering that the industry anticipates to happen as soon as this year, depending on market trends. A spokeswoman for GSR declined to comment. RedNote representatives did not respond to a request for comment.
11:02
Why are American TikTok 'refugees' migrating to China's RedNote ahead of possible US ban?
Why are American TikTok 'refugees' migrating to China's RedNote ahead of possible US ban?
RedNote, based in Shanghai, is a go-to platform in China for travel reviews, lifestyle tips and shopping guides. Co-founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang, it counts today on both advertisement and e-commerce for income. The company was on track to double profits to more than US$1 billion in 2024.
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