Xiaohongshu, a Chinese social media and e-commerce platform also known as RedNote, has denied rumors that Alibaba is planning to acquire the company.

The speculation, which originated from claims on social media citing “internal sources,” was described as false by Xiaohongshu.

As of now, Alibaba has not commented on the rumors.

This is not the first time such speculation has arisen. In 2019, similar claims about an acquisition were also denied by Xiaohongshu’s executives.

Founded in 2013, Xiaohongshu has raised $900 million in seven funding rounds. Notable investors include Tencent and ZhenFund. An internal document from GSR Ventures indicates that the company’s valuation has increased to $26 billion as of March 2025, up from $17 billion at the end of 2023.

🔗 Source: Huxiu

🧠 Food for thought

1️⃣ Xiaohongshu’s remarkable valuation growth indicates its strategic importance

The social commerce platform’s reported valuation jump from $17 billion in late 2023 to $26 billion by March 2024 represents a more than 50% increase in just a few months 1.

This surge surpasses Xiaohongshu’s previous peak valuation of $20 billion reached in 2021, demonstrating extraordinary growth in a challenging economic environment 1.

The platform’s impressive trajectory is noteworthy considering it was valued at approximately $6 billion in 2020, reflecting a quadrupling in value over just four years 1.

Both Alibaba and Tencent are already strategic investors in Xiaohongshu, having participated in earlier funding rounds that raised a total of $900 million, giving them existing stakes in the company’s success 1.

This valuation escalation makes Xiaohongshu an increasingly significant asset in China’s technology landscape, particularly as it expands beyond its initial cross-border shopping focus to become a comprehensive lifestyle platform.

2️⃣ Xiaohongshu’s unique hybrid model creates distinctive market value

Unlike traditional e-commerce platforms, Xiaohongshu combines elements of Instagram, Pinterest, and shopping apps to create a community-driven content ecosystem with 300 million monthly active users 2.

The platform’s user base is predominantly female (79%) and young, representing consumers with significant purchasing power who rely on authentic peer recommendations rather than traditional advertising 2.

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