Xiaohongshu’s largest shareholder is in talks to sell shares in the company at a valuation of at least $20 billion. Tencent and other large companies are reportedly interested in the deal. According to people familiar with the matter, GGV Capital, GSR Ventures and Tian Tu Capital are in talks to sell part of their stakes in Xiaohongshu. Funds that have shown interest include existing shareholders HongShan Capital Group (formerly Sequoia China) and Hillhouse Investment, the people said. Tencent is also considering whether to buy more shares, one of the people added. However, the deal has not yet been completed because existing shareholders have pre-emptive rights and the negotiations could still fail if potential buyers decide to put it on hold, the people said.