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 start-up scene. A GSR spokesperson declined to comment, while Xiaohongshu representatives did not respond to an emailed query.
GSR Ventures, founded in 2004 and with US$3.7 billion of assets under management, has backed more than 100 companies including the 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, pronounced “Shau Hong Shew”, include ZhenFund, Tiantu Capital and GGV Capital, which has since split into Granite Asia and Notable Capital.
