Xiaohongshu, also known as ‘Little Red Book’ in Chinese, is a social media and e-commerce app. It is unusual in receiving backing from both Alibaba and Tencent, two giants that rarely co-invest in other companies. It was reported to be valued at  $10 billion earlier this year.

The company has made its name as a platform for sharing content, where people can post product photos with reviews and tips for other users. The idea is to aggregate trusted content from a community of users, which supports word-of-mouth advertising and online sales of products. Between 70-80% of Xiaohongshu users are women, with a heavy focus on fashion and beauty brands on the platform.

Xiaohongshu completed an investment round in autumn 2021 that saw its valuation jump to $20 billion, double the levels of earlier in the year. After dropping plans for a listing in the US , it was expected to file for an initial public offering in Hong Kong within the next few months.

For more on the background to Xiaohongshu, read here.

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