Chinese social media platform Xiaohongshu, often called "China's Instagram," is gearing up for a confidential Initial Public Offering (IPO) in Hong Kong by the end of June. The company, also known as RedNote, aims to capitalize on a receptive market for tech debuts in Hong Kong. This move follows a period of significant growth and shifts in its valuation, which reached approximately $17 billion in a 2024 funding round and surged to $31 billion in a secondary-market transaction last September. The company informed shareholders it anticipates achieving a profit of about $3 billion in 2025, and some sources suggest a projected profit of $3 billion for 2026.
In a strategic move to diversify its user base and increase daily active users, RedNote has secured a deal to stream the 2026 FIFA World Cup. This is a deliberate effort to attract more male users, as its current user base of over 400 million monthly active users and 170 million daily active users is predominantly female. By streaming all 104 matches, offering replays, highlights, and introducing features like chat columns, expert commentary, match prediction tools, and fan communities, RedNote hopes to convert soccer fans into regular users. The platform has already built out its football coverage, having livestreamed the German Super Cup and becoming the official broadcaster of the German league, and signing high-profile coaches for the 2022 World Cup.
Founded in 2013 by Charlwin Mao and Miranda Qu, Xiaohongshu has evolved from a shopping guide app into a major lifestyle and social-commerce platform, competing with ByteDance’s Douyin. Investors like Tencent Holdings, Alibaba Group Holding, and Hillhouse Investment have backed the company. While the exact size and valuation of the IPO are yet to be determined, some reports indicate a valuation as high as $50 billion in private secondary trades towards the end of last year. The company is working with banks including Goldman Sachs and CICC on the listing, which could potentially be one of Hong Kong's largest in recent years, though it still requires approval from Chinese regulators.
