Today, according to informed sources, Xiaohongshu may go public in Hong Kong as early as the second half of 2024. An investor close to Xiaohongshu stated that the company plans to conduct another round of financing before initiating the IPO, which would essentially be a crossover round, and if everything goes smoothly, it would be fully closed in the first half of next year. However, Xiaohongshu has just responded to the media, stating that the company currently has no plans for listing.
It is worth noting that as early as the first half of 2021, a group of internet platform companies, including Xiaohongshu, with monthly active users reaching tens of millions or even hundreds of millions, conducted investor roadshows in the United States. Several fund managers at the time mentioned that the feedback from Xiaohongshu’s roadshow was “quite good.”
Furthermore, according to recent reports, Xiaohongshu is expected to achieve a net profit of approximately $500 million this year, far exceeding the company’s initial expectation of $50 million in net profit.
At the end of 2021, Xiaohongshu completed a financing round primarily led by existing shareholders, with a post-investment valuation exceeding $20 billion. In September of this year, The Information reported, citing three sources, that Sequoia China acquired shares of Xiaohongshu at an estimated valuation of approximately $14 billion through several transactions earlier this year. Based on this, the valuation of Xiaohongshu in the new round of financing is expected to be high.
