The photo-sharing platform Xiaohongshu, also known as Little Red Book in English, just raised $500 million in a new round of funding led by Temasek and Tencent, boosting its valuation to $20 billion, Chinese tech news outlet 36Kr reported on Monday.

Existing investors including Alibaba, Tiantu Capital, and Genesis Capital also participate the round.

Prior to this, the social media company, which was formed in 2013, had raised a total of $417.7 million in fundraising over 7 rounds, according to Crunchbase.

Xiaohongshu, which calls itself a lifestyle content platform, has witnessed a continuous growth in its monthly active users (MAUs) and daily active users (DAUs) since March of this year. According to data from Quest Mobile, its MAU surpassed 130 million in August, while its DAU surpassed 45 million, representing a year-over-year gain of more than 70%.

It has surpassed Weibo, becoming the third most downloaded social app in the Apple Store in China. Even Elon Musk’s mother Maye Musk opened a personal account on Xiaohongshu on April 4, and has accumulated 274,000 fans so far.

Citing sources, Bloomberg reported last month that Xiaohongshu is working with advisers and could file an application for a Hong Kong IPO as soon as this year, possibly raising at least $500 million (HK$3.9 billion). However, a representative for the company said they do not have any specific IPO plans at the moment.

This social platform, which is deeply loved by Gen-Z, has become one of the top choices for advertising and marketing by major consumer brands. 80% of users use the search function, and this will have a great impact on their consumption decisions, Xiaohongshu previously revealed.

The company's income mainly comes from advertising and e-commerce. In 2020, advertising contributed $600 million to $800 million in revenue, accounting for 80% of the total revenue.