Xiaohongshu Technology Co is set to triple its profit to US$3 billion (RM12.6 billion) this year, driven by stronger commercialisation efforts as it edges closer to a potential public listing.
According to people familiar with the matter, the Shanghai-based social media firm recently shared its full-year forecast with investors. The profit projection puts Xiaohongshu ahead of US-based rivals in the visual social platform space, surpassing Pinterest’s expected 2024 earnings by about 50% and far outpacing Snap Inc, which has yet to turn a profit.
Best known for its lifestyle-focused app—called “RedNote” outside China—Xiaohongshu has amassed 300 million monthly active users who rely on it for news, product reviews, and lifestyle inspiration. Its growing popularity has lifted the company’s valuation to about US$31 billion, according to Bloomberg News.
The platform has also gained traction in the United States, positioning itself as an alternative to TikTok amid regulatory challenges faced by ByteDance’s flagship app. Often dubbed “China’s Instagram,” Xiaohongshu is expanding beyond ads into e-commerce, leveraging partnerships with Alibaba Group Holding Ltd and JD.com Inc.
Founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang as a shopping guide for Chinese tourists, Xiaohongshu has since become a go-to hub for travel tips, product recommendations, and lifestyle content—gradually overtaking older platforms such as Baidu.
While profitability had long been a concern for investors, the company has accelerated growth by rolling out livestreaming and short-video commerce features similar to TikTok. It doubled its profits to more than US$1 billion in 2024, Bloomberg reported.
Despite its rapid rise, Xiaohongshu remains privately held. Backed by major investors including HSG (formerly Sequoia Capital China) and Alibaba, the company shares financial updates with stakeholders but is not required to disclose audited results.
