Xiaohongshu, a Chinese startup that’s a mashup of Instagram and Pinterest, is in talks to raise as much as $500 million at a valuation that could reach $6 billion, said four people familiar with the matter. The talks defy a slowdown in technology funding deals in China.
A social media and online retailing startup that lets users post reviews and recommendations, and make purchases, Xiahongshu is holding discussions with potential investors including SoftBank’s Vision Fund, Sequoia Capital China and Hillhouse Capital, the people said. The potential valuation would be double that of its last funding round, though the deal hasn’t yet closed and terms could still change. Existing backers include Chinese internet giants Alibaba and Tencent, and venture capitalists including GGV Capital and Genesis Capital. Xiaohongshu denied it was raising money.