TikTok Rival Xiaohongshu Valued at $31 Billion After Profit Surge

TLDRs;

• Xiaohongshu, known as TikTok’s rival, expects profits to triple to $3 billion in 2025.
• The platform’s $31 billion valuation surpasses rivals like Pinterest and Snap in profitability strength.
• E-commerce tie-ups with Alibaba and JD.com strengthen its social-commerce ecosystem beyond advertising revenues.
• Founded in 2013, Xiaohongshu has evolved into a global lifestyle and shopping platform with IPO prospects ahead.

Xiaohongshu Technology Co., the social media platform often dubbed China’s TikTok rival, is projected to triple its profit to $3 billion this year.

The forecast represents a sharp leap from its 2024 earnings and positions the company well ahead of competitors such as Pinterest and Snap. According to investor updates, Xiaohongshu’s profit outlook is roughly 50% higher than Pinterest’s 2024 performance and firmly surpasses Snap, which continues to struggle toward profitability.

The company’s strong results follow an ambitious push to monetize its highly engaged user base of 300 million monthly active users.

Built on lifestyle content, shopping recommendations, and user-generated reviews, Xiaohongshu, also known internationally as RedNote, has quickly become a trusted daily resource for a new generation of consumers.

Expansion Through E-Commerce Partnerships

Beyond traditional advertising, Xiaohongshu is aggressively pursuing growth in e-commerce. The company has forged partnerships with retail giants Alibaba Group Holding Ltd. and JD.com, enabling users to purchase products directly within the app. This integrated commerce strategy sets it apart from social platforms that primarily rely on ad revenues.

In fact, Xiaohongshu’s community-driven model, where influencers and users alike recommend products through livestreams and short-form video, has fueled higher purchase intent. Analysts say this hybrid of social media and e-commerce has become a defining strength, generating stronger user stickiness and merchant growth than seen in Western rivals.

Valuation Surge and IPO Prospects

Following its latest earnings update, Xiaohongshu’s valuation has soared to $31 billion, as reported by Bloomberg. The surge reflects heightened investor confidence, particularly as the company signals potential plans for a public listing.

The Shanghai-based firm, still privately held, counts Alibaba and venture capital powerhouse HSG (formerly Sequoia Capital China) among its prominent backers. With profits doubling to over $1 billion in 2024 and now set to triple, Xiaohongshu has joined a select group of Chinese internet companies that combine scale, profitability, and strong international potential.

From Shopping Guide to Social Powerhouse

Founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang, Xiaohongshu began as a shopping guide for Chinese tourists abroad. Over time, it transformed into a lifestyle platform where users share reviews, travel tips, and product recommendations.

Its evolution came partly at the expense of older platforms such as Baidu, as younger smartphone users turned to Xiaohongshu for discovery and inspiration. More recently, the platform has gained global recognition as an alternative to TikTok, especially in the U.S., where ByteDance’s flagship app has faced political and regulatory scrutiny.

While Xiaohongshu does not publicly disclose audited financials, it regularly shares figures with investors. The company’s path toward profitability has quelled earlier skepticism, marking a turning point for one of China’s most influential digital platforms.

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