The valuation of the social platform mini-red book, which climbed to $26 billion in the most recent large-scale fund transaction, was not derived from open financing, but from a GSR IV equity transaction document based on GSR Ventures.
The document showed that the Red Book represented 91 per cent of the Fund ‘ s assets and that, as at the end of March 2025, the Fund ‘ s net assets were approximately $2.44 billion, of which 8.47 per cent had an equity value of $2.22 billion, contributing to the maximum value of the Fund ‘ s portfolio. This valuation represents a significant increase from the $20 billion previously reported, surpassing the historical peak during the outbreak of 2021 and injecting a strong impetus into the first public equity (IPO) that the Little Red Book could start in 2025.
According to the transaction documents of Kim Shaejiang for the GSR IV Fund, 8.47 per cent of the shares in the Little Red Book were valued at $2.22 billion, thus extrapolating the corporate valuation to approximately $26 billion. The share of the net assets of the GSR IV fund was as high as 91 per cent. The growth in the valuation of the Little Red Book was due to its projected doubling of net profits in 2024 to approximately $2 billion, well above market expectations. According to analysts, the valuation of the mini-red book could exceed $50 billion by a 25-fold gain (PE).
As a leading social utility platform in China, the Red Book combines content-sharing with electric power, attracting a large number of young users and female consumers. In 2024, there was a significant increase in the adhesiveness of the platform ‘ s users and the steady growth of the electricity company ‘ s business, especially in the group of cosmetics, fashion and lifestyle products. According to market news, the Little Red Book is challenging TikTok in the United States market, with its unique community-driven model and precision algorithm recommendations that make it increasingly competitive in the global market.
Small red books achieve greater user participation and liquidity than traditional social media, such as microblogging, through deep integration of content with the electrician. However, the difficulty of realization and long-term ecological stability of the platform remain a concern for some investors. The competition with TikTok is particularly striking, as the small red book gradually encroaches on the share of the United States market through localized content and precision marketing, but still has to address the challenges of regulatory and cultural differences.
The market generally expected the launch of IPO in 2025, a $26 billion valuation that further boosted investor confidence. The analysts noted that if the Little Red Book was successfully placed on the market, its valuation could climb further and bring greater returns to investors.