Lifestyle, travel and community e-commerce platform Xiaohongshu raised $300 million in its latest funding round led by Alibaba, as part of its recent push to capture the global market.
The Shanghai-based company is now valued at $3 billion.
Additional investors included Jinshajiang Venture Capital, Tencent Investment, Jiyuan Capital, Yuansheng Capital, Tiantu Investment, Zhenwen Fund, and K11 Zheng Zhigang, which represented a mix of new and old revenue streams, Technode reported.
According to the company, the funds will be used to expand its team, improve its technology and grow its user base.
Founded in 2013, Xiaohongshu currently has around 100 million users and 30 million monthly active users, most of whom were born in the ’90s. The platform platform allows users to share short videos and photos, with an emphasis on beauty, fashion, food, travel and entertainment. It also allows users to share cross-border shopping information.
The funds will be used to expand the company’s team, improve its technology and grow its user base.
Xiaohongshu started its business by helping overseas travelers draft a shopping list before they hit the roads. As user-generated content started to build up, the service transformed into a community for those who are passionate about fashion and shopping, and want to known more about those areas, even if they don’t have overseas travel on their schedules, according to Crunchbase.
Alibaba‘s hefty investment in the company follows its recent strategy of expanding into the international market, with a recent focus on Pakistan, India, Indonesia and Singapore. And it makes financial sense: 8% of its total revenue comes from the global market.