The rumor mill is churning again, and this time, the online chatter points to a potential acquisition of Xiaohongshu (Little Red Book) by e-commerce titan Alibaba.
The latest wave of speculation, which gained traction on social media platforms, suggests that Alibaba is poised to acquire the popular lifestyle and e-commerce app. However, Xiaohongshu has swiftly moved to quash these rumors, officially stating that the information is “groundless.” Alibaba, for its part, has yet to issue a formal response.
It’s worth noting that this isn’t the first time such whispers have surfaced. Back in 2019, similar reports circulated, claiming an impending Alibaba buyout with Alibaba’s HRG personnel already having infiltrated the company. At the time, Xiaohongshu executives vehemently denied the claims, with one executive publicly stating, “This is a fabrication. We have sent a letter to the source of the rumor and will pursue legal action to the fullest extent.”
Founded in 2013, Xiaohongshu has experienced a significant growth trajectory, securing seven rounds of funding totaling over $900 million. Among its notable investors are tech giants Tencent and Alibaba, as well as investment firms such as CD Capital, Zhen Fund, and CITIC Capital.
More recently, market observers have pointed to a positive shift in Xiaohongshu’s valuation. An internal document from GGV Capital, reportedly dated March of this year, indicated that Xiaohongshu’s valuation had soared to an impressive $26 billion. This marks a substantial increase of over 50% from its $17 billion valuation at the end of 2023, surpassing its previous all-time high of $20 billion set in 2021. This surge in valuation underscores Xiaohongshu’s growing influence and market appeal.
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