Xiaohongshu Stake Sale Talks Value TikTok Rival at $20 Billion
- Existing VC backers are in talks to unload some of their stock
- Xiaohongshu on track to regain 2021 peak as TikTok ban looms
A successful deal will propel Xiaohongshu’s valuation back to levels last seen during its peak in 2021.
Photographer: Raul Ariano/BloombergXiaohongshu’s biggest shareholders are in talks to sell shares in the Chinese Instagram-like service at a valuation of at least $20 billion, drawing interest from Tencent Holdings Ltd. and other big names as a potential TikTok US ban approaches.
Backers GGV Capital, GSR Ventures and Tiantu Capital are negotiating to sell part of their holdings in China’s closest parallel to Instagram, according to people familiar with the matter. Funds that showed interest included existing stakeholders HongShan Capital Group (formerly Sequoia China Capital) and Hillhouse Investment, the people said, requesting not to be named because the matter is private. Tencent is also considering whether to buy more shares, one person added.