Xreal has raised $60 million to build its business of making consumer augmented reality (AR) glasses.
This latest infusion of capital will be directed towards research and development as well as the expansion of its manufacturing facilities, crucial for scaling up production of Xreal‘s globally acclaimed augmented reality (AR) glasses.
The funding comes after Xreal showed off its Xreal Air 2 Ultra AR glasses at CES 2024, the big tech trade show in Las Vegas earlier this month. It also announced its latest partners like BMW and Qualcomm.
Founded in 2017, Xreal has won substantial support from notable backers, including Alibaba, Nio Capital, Sequoia, Kuaishou, and Gentle Monster. The company did not disclose the investor for this strategic round. To date, the company has raised $300 million.
“This latest strategic fundraising round reinforces our position in the global AR market, it skyrockets our expansion goals, and it demonstrates strong commitment from our trusted fundraising partners,” said Chi Xu, CEO of Xreal, in a statement. “As the first unicorn in AR glasses, we see where the AR industry is heading and are honored to continue leading and teaming with the industry’s finest today, through the launch of Xreal Air 2 Ultra in the spring, and beyond. Developer, partner and retailer conversations are underway now to make Xreal Air 2 Ultra’s first-year the biggest in AR history.”
The $60 million injection will advance development of Xreal’s proprietary optical engine, a key component in its AR glasses. The funds will also facilitate the expansion of manufacturing capabilities, setting the stage for increased production of AR glasses in the years to come.
Xreal recently announced the shipment of an industry-leading 350,000 AR glasses. The company’s sees the latest glasses as the “future of affordable, full-featured spatial computing.” It is available for pre-order at USD $699, with shipments slated to commence in March.
The timing of this funding round aligns with the surging growth in the AR industry. According to IDC, global spending on AR/VR headsets is projected to reach $3.9 billion in 2023, with growth forecast to hit $16.2 billion by 2027, with a five-year compound annual growth rate (CAGR) of 32.6%.
Xreal captured 51% according to IDC’s November AR/VR Tracker. The company reported a year-over-year growth rate of 320% in revenue during the first nine months of 2023.
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