BEIJING (PingWest) — China’s social media and e-commerce startup Xiaohongshu, or “Little Red Book,” is in early talks to raise funds at a valuation of about $6 billion, according to Bloomberg citing people familiar with the matter.
The online social media and e-commerce platform backed by both China's top two Internet giant, Tencent Holdings Ltd. and Alibaba Group Holding Ltd., aims to raise about $400 million to $500 million, said the source. The company is working with an adviser on the financing plan and has sounded out potential investors, said the people, who asked to remain anonymous. Xiaohongshu's valuation reached about $5 billion last year, one person said.
There hasn’t been a final decision on the fundraising size yet.