China-based social commerce app developer Xiaohongshu has raised $500m from investors including internet group Tencent and e-commerce firm Alibaba, Reuters reported yesterday, citing a source familiar with the matter.
Singaporean government-owned investment firm Temasek also participated in the round together with venture capital firm Genesis Capital and investment management firm Tiantu Capital Management at a valuation of up to $20bn.
Xiaohongshu operates an online platform that allows users to share images, videos and stories which can help to leverage online purchases and review consumer products and services.
A Xiaohongshu spokesperson told Reuters: “The current round of financing mainly stems from existing shareholders who increased their stakes in the company. We thank our shareholders for their long-standing trust and continued support.”
The company’s last round was a $300m series D led by Alibaba in 2018 that included Tencent, Tiantu Capital, Genesis Capital, GGV Capital, GSR Ventures, ZhenFund and Adrian Cheng.
Tencent, ZhenFund, GGV Capital and GSR Ventures had already provided $120m in series C funding for Xiaohongshu in 2016 at a $900m pre-money valuation, following a $10m series B round led by GGV the previous year. It had raised a seven-figure dollar amount in a 2014 series A round featuring ZhenFund.
