Xreal gets $60 million to purchase AR glasses for consumers
Xreal has secured $60 million to expand its business producing consumer augmented reality (AR) goggles.
This current round of funding will go towards research and development, as well as the development of its manufacturing plants, which is critical for increasing the creation of Xreal’s world-famous augmented reality (AR) goggles.
The financing comes after Xreal unveiled their Xreal Air 2 Ultra AR glasses at CES 2024, a major technology trade exhibition in Las Vegas, recently. It also revealed its newest partners, including BMW and Qualcomm.
Founded in 2017, Xreal has received significant funding from renowned investors such as Alibaba, Gentle Monster, Nio Capital, Kuaishou, and Sequoia. The business did not reveal the investor in this strategic round. So far, the firm has collected $300 million.
According to an announcement from Xu, this most recent major funding phase shows a strong dedication from the company’s valued financing associates, solidifies its stance in the worldwide AR marketplace, and increases development objectives. The company is honoured to continue to lead and collaborate with the finest right now, as they are aware of where the sector is headed. This includes the launch of Xreal Air 2 Ultra in the coming months as well as thereafter. They were the first unicorn to wear AR glasses. In order to render the inaugural year of Xreal Air 2 Ultra one of the best in AR history, conversations are now taking place with creators, associates, and merchants.
The $60 million investment would help Xreal progress the development of its patented optical engine, which is an essential part of its augmented reality glasses. The money will also help to expand fabrication facilities, paving the way for larger batches of AR glasses in the coming years.
Xreal recently revealed that 350,000 AR glasses were sold, setting a new milestone. The company claims that the upgraded glasses signify the direction of fully functional, reasonably priced spatial analysis in the near future. It is available for pre-order for USD $699, with shipping set to begin in March.
This financing round occurs at a time when the AR sector is seeing rapid expansion. As reported by IDC, worldwide expenditure on AR/VR headgear is expected to hit $3.9 billion in the immediate future, rising to $16.2 billion by 2027, at a five-year CAGR value of 32.6%.
According to the November AR/VR Tracker from IDC, Xreal grabbed 51%. During the first nine months of 2023, the corporation recorded a 320% increase in sales over the previous year.