Platform
RedNote Valuation Jumps To $26 Billion As Chinese Platform Gains Momentum With U.S. Investors
RedNote’s valuation has surged to $26 billion in recent market transactions, up from its previously reported $20 billion valuation and surpassing its $17 billion valuation from the secondary share sale.
The Chinese social media platform’s price tag emerged through a document from a GSR Ventures Management vehicle that showed shares of the fund changing hands. RedNote comprises 91% of the GSR fund’s assets, according to internal documents reviewed by Bloomberg News.
The latest valuation surpasses RedNote’s peak during the COVID-19 era in 2021 and puts the Shanghai-based platform on an upward trajectory. The company was on track to double profits to more than $1 billion in 2024, according to Bloomberg reporting.
RedNote, also known as Xiaohongshu, has recently risen to the top of the U.S. App Store. More than 500,000 American users have reportedly joined the platform, according to Reuters. The app’s surge in downloads comes as TikTok faces removal from U.S. app stores unless its parent company, ByteDance, divests its U.S. operations.
The platform boasts 300 million monthly active users worldwide, with 79% of them being women. RedNote blends social media and e-commerce, combining short-form video content with elements similar to those found on Instagram and Pinterest. Users share product reviews, lifestyle content, and experiences, with the app enabling direct purchases through its platform.
Investment Backing
GSR Ventures, founded in 2004 with $3.7 billion under management, leads RedNote’s investor base. The firm’s GSR Ventures IV fund counts investment from U.S. backers, including Pennsylvania State University trust and Carnegie Mellon University. The fund’s net asset value stood at approximately $2.44 billion as of the end of March, with RedNote representing the biggest contributor to its portfolio.
Additional backers include funds managed by Schroders Capital, StepStone Group, and a venture arm of Ontario Teachers’ Pension Plan. The company has also won backing from GGV Capital, ZhenFund, and Tiantu Capital.
