TechFlow reported on January 16, citing Jinshi News and sources close to the matter, that GGV Capital, GSR Ventures, and Tian Tu Capital—the major shareholders of Xiaohongshu—are in talks over selling a portion of their stakes, with the valuation set at no less than $20 billion. Existing shareholders including Sequoia Capital Group (formerly Sequoia China) and Hillhouse Investment have expressed interest in acquiring the shares, while Tencent is also considering increasing its stake.
The transaction has drawn market attention amid growing concerns over a potential TikTok ban in the United States. According to insiders, the deal remains uncertain as existing shareholders hold pre-emptive rights and the situation surrounding TikTok continues to evolve.
