Xiaohongshu is not listed, but its valuation exceeds 20 billion, why?

Xiaohongshu is not currently listed, but after financing, it is believed to be worth more than $20 billion, mainly because capital is now bullish on the liquidity of vertical communities. Because Xiaohongshu has now gathered a large number of people, and the vast majority of these people are still young people, and their spending power is stronger than that of most platforms.

1. Users of Xiaohongshu.

The most valuable thing about Xiaohongshu is its users. Since the establishment of Xiaohongshu in 2013, users have recorded the bits and pieces of life on Xiaohongshu through short **** and other forms, sharing the way of life, and finally attracted people with the same frequency as themselves, and these people have formed interactions because of their interests. Xiaohongshu's active users are in a state of increasing every year, with a significant increase in 2020, during which the notes posted by Xiaohongshu users increased by 150% year-on-year.

Most of the user portraits are young people in their 15s and 30s.

Second, it's not just a community of women.

It seems that when it comes to platforms like Xiaohongshu, everyone's first reaction is that Xiaohongshu shares notes on food and makeup and skin care, so it stands to reason that a large number of female users should be gathered. But in fact, the growth rate of notes on Xiaohongshu and sports events has exceeded 1100%, and the notes on technology, homestays, and digital are also growing. This means that Xiaohongshu is not a traditional female community in people's impression, and the number of male users is growing rapidly, and it is said that the ratio of male to female users in Xiaohongshu is as high as 3:

7。<>3. Vertical fields that are favored by capital.

Why Xiaohongshu is not listed but the valuation can exceed 20 billion, it is nothing more than that it is favored by all kinds of capital, and the amount of ** gathered on Xiaohongshu is very large, if these people are realized, it is a huge amount of income. This is why various capitals are willing to continue to invest in him, that is, they are optimistic about the future development of Xiaohongshu, and feel that when the realization is implemented, the benefits that can be brought are much higher than the continuous investment in recent years.

Xiaohongshu's valuation can increase significantly by more than 20 billion yuan, on the one hand, because the data of the Xiaohongshu platform is performing well, the daily active users are growing rapidly, and the revenue scale is also considerable. On the other hand, related to the current investment environment, investors prefer top companies and will give higher valuations.

Because Xiaohongshu wants to provide everyone with more real things, it did not choose to go public. If it goes public, Xiaohongshu's development may be off track.

This is because the development of Xiaohongshu is very good, the economic benefits are very considerable, and the reputation is also very good, so the market value exceeds 20 billion.

The Little Red Bird Zen Book is not yet on the market.

In March 2021, Yang Ruo officially joined Xiaohongshu as CFO, responsible for financial strategy formulation, financial management and internal risk control. At that time, this move was interpreted by the outside world as Xiaohongshu preparing for listing.

It has to be mentioned that Yang Ruo's resume is very impressive, graduated from the University of California, Berkeley, before joining Xiaohongshu, he served as the managing director of Citigroup TMT investment bank in Asia Pacific, and also worked in Ernst & Young and PricewaterhouseCoopers, and has rich experience in the financial circle. Therefore, Yang Ruo, who is familiar with the operation of the secondary market and financial review, is very suitable for the listing of Xiaohongshu.

The fact is that after Yang Ruo joined, there were indeed more rumors about Xiaohongshu's listing.

As early as a month after Yang Ruo joined the company, there was news that Xiaohongshu planned to go to the United States for IPO fundraising in the middle of the year. Even a person familiar with the matter revealed that Xiaohongshu has secretly submitted an application for listing in the United States.

But just three months later, the news that Xiaohongshu would suspend its listing in the United States spread all over the Internet. At the same time, according to Bloomberg, Xiaohongshu is considering transferring the listing location from the US stock market back to the Hong Kong stock market, and plans to raise funds. However, Xiaohongshu denied the news.

After that, in October, there was still ** constantly paying attention to Xiaohongshu's listing plan, analyzing that Xiaohongshu may submit an IPO application in Hong Kong as soon as 2021. However, this time, Xiaohongshu publicly responded, saying that it would maintain communication with the capital market in stages, but there was no IPO plan for the time being.

Summary. Regarding Xiaohongshu's financial situation, in the first half of 2021, Xiaohongshu's revenue grew rapidly, exceeding expectations, and reached the predetermined target, with a total turnover increase of 125% over the same period last year, and revenue also increased significantly, with total revenue exceeding 100 million US dollars, and revenue growth reaching 90%. At the same time, in the first half of 2021, Xiaohongshu achieved a cash flow of up to 100 million yuan at the end of the period, a year-on-year increase of several times, and the capital reserves are still abundant, and there is still a large room for investment.

In the first half of 2022, Xiaohongshu's revenue is also expected to continue to accelerate growth. According to Xiaohongshu's report, in the first half of 2022, the revenue will exceed $300 million, and the revenue growth rate will exceed 100%; Cash flow will also continue to grow, with ending cash flow exceeding $400 million, more than double the same period last year. In addition, Xiaohongshu has also made plans for future development, including the development of new products, optimization of user experience, data analysis, etc., which will help Xiaohongshu further improve its development performance by the end of 2021.

Specific numbers. Regarding Xiaohongshu's financial situation, in the first half of 2021, Xiaohongshu's revenue grew rapidly, exceeding expectations, and reached the predetermined target, with a total turnover increase of 125% over the same period last year, and revenue also increased significantly, with total revenue exceeding 100 million US dollars, and revenue growth reaching 90%. At the same time, in the first half of 2021, Xiaohongshu achieved a cash flow of up to 100 million yuan at the end of the period, a year-on-year increase of several times, and the capital reserves are still abundant, and there is still a large room for investment.

In the first half of 2022, Xiaohongshu's revenue is also expected to continue to accelerate growth. According to Xiaohongshu's report, in the first half of 2022, the revenue will exceed $300 million, and the revenue growth rate will exceed 100%; Cash flow will also continue to grow, with ending cash flow exceeding $400 million, more than double the same period last year. In addition, Xiaohongshu has also made plans for future development, including the development of new Zen products, the optimization of user experience, data analysis, etc., which will help Xiaohongshu further improve its own development performance by the end of 2021.

What is the amount of profit of Xiaohongshu in 2021 and 2022.

Since Xiaohongshu has not yet announced the amount of profits for 2021 and 2022, we cannot be exact on this issue. However, we can estimate the profit of Xiaohongshu in 2021 and 2022. According to Xiaohongshu's financial report information from 2018 to 2020, the overall profit growth rate is between 25% and 35%, and this part of the growth rate will continue to be maintained in 2021 and 2022, and there will be a certain increase in the year-on-year time frame.

In addition to the above, Xiaohongshu has announced plans to acquire Sina Social**'s "activity platform" and "valuation" business leasing in the first half of 2021, which can also help Xiaohongshu increase revenue to a certain extent in 2021 and 2022, thereby helping to increase profits.

According to foreign media reports, recently, Xiaohongshu will suspend its plan to go public in the United States (It is planned to raise up to $1 billionAt present, Xiaohongshu has not responded.

In April this year, a person familiar with the matter told ** that Xiaohongshu plans to conduct an IPO in the United States around the middle of the year, raising about $500 million to $1 billion. People familiar with the matter said at the time that Xiaohongshu was working with Goldman Sachs and Morgan Stanley on a planned listing. According to one of the people familiar with the matter, the company has secretly filed a U.S. listing application.

Xiaohongshu's investors include Alibaba and Tencent Holdings. The company reportedly raised $400 million to $500 million in a private placement round in January 2020. After the completion of this round of financing, Xiaohongshu is valued at about $6 billion.

Introduction to the Xiaohongshu platform:

According to public information, Xiaohongshu was founded in June 2013 by Mao Wenchao and Qu Fang. With the mission of "Inspire Lives, Share and Discover the Wonders of the World", users can record their lives in the form of short**, **, etc., share their lifestyles, and form interactions based on their interests.

As of October 2019, Xiaohongshu has more than 100 million monthly active users, 70% of whom are post-90s, and continues to grow rapidly.

The above content refers to Red Star News It is rumored that Xiaohongshu has suspended its listing in the United States, with a previous valuation of about $6 billion, and there is no official response for the time being.