AsianFin -- Chinese social media platform Xiaohongshu, often dubbed the “Instagram of China,” saw its valuation jump 19% to US$31 billion over just three months, according to recent fund transactions, highlighting growing investor appetite for the company.

The valuation increase emerged from portfolio documents distributed by a GSR Ventures Management vehicle, which recorded fund shares changing hands in the first half of 2025. Xiaohongshu accounted for 92% of the fund’s total assetsat the end of June, slightly up from the previous quarter, indicating its dominant weight within the portfolio. Bloomberg calculations based on the fund’s stated net asset value suggest a substantial rise from US$26 billion in the March quarter.

Known in the U.S. as RedNote, Xiaohongshu has gained momentum as a viable alternative to TikTok, which faces potential regulatory challenges in the United States. Investor confidence in the company received a boost after the Chinese government reaffirmed its commitment to supporting private enterprises, rekindling optimism in the country’s startup ecosystem.

Founded in 2004, GSR Ventures manages US$3.7 billion in assets and has backed over 100 companies, including Chinese ride-hailing giant DiDi Global and AI chipmaker Horizon Robotics. The fund holding Xiaohongshu counts some of the world’s largest pension funds and U.S. university endowments as limited partners.