Xiaohongshu Gets Backing from DSTGlobal with a Valuation of 17 Billion US Dollars

TapTechNews July 11th news, according to the Financial Times of the UK, Xiaohongshu has received the support of venture capital firm DSTGlobal. According to three people familiar with the matter, Xiaohongshu conducted a share sale in recent weeks, selling shares to existing and new investors, and the company's valuation reached 17 billion US dollars (TapTechNews note: currently about 123.886 billion Chinese yuan).

DSTGlobal was founded by the Moscow-born Israeli tech entrepreneur Yuri Milner, who had invested in Facebook and participated in this round of investment together with Sequoia China, and Sequoia China increased its existing shares. In addition, Chinese private equity firms Hillhouse Capital, Boyu Capital and CITIC Capital also made investments.

Previously, it was reported that Xiaohongshu achieved profitability for the first time in 2023. According to four people familiar with the matter, Xiaohongshu's net profit last year reached 500 million US dollars (currently about 3.644 billion Chinese yuan), and its revenue reached 3.7 billion US dollars (currently about 26.963 billion Chinese yuan).

The official website of Xiaohongshu shows that the company has received investments from big brand enterprises and institutions such as Alibaba, Tencent, GGV Capital and Sequoia Capital. The company was founded in Shanghai by Mao Wenchao and Qu Fang in 2013, and in October 2019, the monthly active users of Xiaohongshu had already exceeded 100 million, among which 70% of the users are post-90s.