As the US government has given ByteDance Ltd. a deadline to divest TikTok’s US operations, people are rushing to other social media apps from China. Whether it’s Xiaohongshu, known in English as RedNote, the app is a mix of the most compelling mobile software available.
Xiaohongshu Technology Co. is on its way to triple its profits to $3 billion this year. This shows that it is on its fast track as it considers going public.
The company was founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang. It started as a shopping guide for Chinese travelers and has become a go-to platform for travel reviews and lifestyle tips, fashion and skincare tips, and has quickly grown to cover food, gaming, and sports, attracting many young smartphone users. This growth has put pressure on older internet companies, especially search leader Baidu Inc.
Even though there was a fast switch among users to this app, investors were worried whether Xiaohongshu could turn that into profits. In recent years, the app has added new features to keep the new audience engaging and letting influencers sell products through livestreams and short videos, just like TikTok. The company made over $1 billion in profit in 2024, doubling its earnings.
As with many privately held companies, Xiaohongshu is not required to reveal its financial information, so it also does not undergo independent audits. But many startups provide their financial information to investors and potential backers.
The company is supported by HSG, formerly known as Sequoia Capital China, and Alibaba. Xiaohongshu is one of the few major Chinese internet firms still privately owned.
As the US government has given ByteDance Ltd. a deadline to divest TikTok’s US operations, people are rushing to other social media apps from China. Whether it’s Xiaohongshu, known in English as RedNote, the app is a mix of the most compelling mobile software available.
Xiaohongshu mixes features from Instagram, Pinterest, TikTok, and Twitter, making it a big name in Chinese social media. It now tops US download charts. Its rise has happened naturally, without anyone pushing TikTok users to try another Chinese app. Ironically, efforts to ban TikTok in the US are sending fans to other Chinese apps. The next most-downloaded iPhone app in the US is Lemon8, also owned by ByteDance, the parent company of TikTok.
The social media company has recently updated investors regarding its projections for the year, as shared by sources familiar with the projections. As the world shifts to visual-based social platforms, it is predicted that Xiaohongshu’s profit will be approximately 50% higher than Pinterest Inc.’s earnings for 2024 and will likely surpass Snap Inc.’s, which has yet to achieve a profitable year.
Xiaohongshu has around 300 million monthly active users and a dedicated user base that relies on it for daily news and entertainment. The Shanghai-based startup’s valuation has reached the skies to $31 billion in recent funding rounds.
Xiaohongshu gained attention in the US early this year as a competitor to TikTok, particularly when concerns arose about the potential ban of TikTok, which was backed by ByteDance Ltd. It is commonly recognized as China’s closest equivalent to Instagram. Instagram is also working to grow and develop its app in such a way that it replicates TikTok through similar updates. In addition to generating revenue through advertising, the Xiaohongshu app is increasing its e-commerce space through partnerships with Alibaba Group Holding Ltd. and JD.com Inc.
As of September 2025, TikTok was standing on a thread in the United States, as the law mandated that the parent company, ByteDance, divest TikTok, which has millions of users, or face a ban. Later, United States President Donald Trump signed an executive order to extend the deadline, allowing time for negotiations.
Xiaohongshu representatives did not respond to an emailed inquiry.