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China’s Instagram-like app Xiaohongshu expected to top $1 billion profit ahead of potential IPO
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TechNode
Xiaohongshu, a Chinese social platform often likened to Instagram, is expected to double its profit to more than $1 billion in 2024 ahead of a potential IPO, Bloomberg reported on Thursday.
The potential milestone reflects the platform’s renewed focus on profitability over user growth, which has slowed since its peak during the COVID-19 pandemic, according to a source familiar with the matter.
Founded in June 2013 by Charlwin Mao Wenchao and Miranda Qu Fang, Xiaohongshu initially focused on advertising and e-commerce.
According to the Financial Times, Xiaohongshu achieved a historic milestone in 2023, turning a profit for the first time.
Revenue soared to $3.7 billion last year, an 85% year-on-year increase, while net profit reached $500 million, compared to a loss of $200 million in 2022.
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