Xiaohongshu recently secured backing from DST Global, marking a notable shift as foreign investors cautiously re-enter the Chinese tech sector post-Beijing crackdowns. The platform, beloved by urban female users, achieved a valuation of $17 billion through stake sales to DST, HongShan (formerly Sequoia China), and several Chinese private equity firms. This funding round underscores Xiaohongshu’s profitability in 2023, with $500 million in net profit on $3.7 billion revenue, a stark improvement from previous years. Supported by Tencent and Alibaba, Xiaohongshu aims to sustain growth amid regulatory challenges, potentially paving the way for a high-profile IPO.