Interactive augmented reality keeps thriving
XREAL, the prominent consumer-grade AR eyewear brand, has successfully concluded a strategic funding round, securing an impressive USD 60 million.
This funding infusion propels XREAL's cumulative funding to an impressive USD 300 million, catapulting the company's valuation beyond the USD 1 billion mark, according to industry analysts.
The proceeds from this latest financing round are earmarked for crucial areas, including product development and the expansion of the optical engine production facility. This strategic move is poised to elevate XREAL's AR eyewear production capacity, targeting a production scale of 2 million units by 2025. The expansion underscores XREAL's commitment to fortifying its leading position in the upcoming era of spatial computing.
Founded in 2017 and headquartered in Beijing, XREAL stands as a global trailblazer in the research, design, and manufacturing of consumer-grade AR eyewear. The company not only pioneered the integration of AR eyewear with existing computing devices but also introduced the groundbreaking concept of "Spatial Display." Simultaneously, XREAL's substantial investment in SLAM spatial perception technology positions the company as a driving force accelerating the industry toward the spatial computing era.
As of the latest update, XREAL boasts a workforce of over 600 professionals, with 70% dedicated to research and development.
Debuting during the 2024 CES, XREAL unveiled its latest innovation—the XREAL Air 2 Ultra. Packed with dual 3D environmental sensors and featuring six degrees of freedom (6DoF) functionality, this AR eyewear is priced at $699, presenting a more cost-effective spatial computing platform compared to the Apple Vision Pro. This launch injects renewed vigor into the spatial computing developer community.
Anticipating a resurgence in the global Augmented Reality and Virtual Reality (AR/VR) industry, IDC's earlier predictions suggest a 46.4% surge in AR/VR headset shipments in 2024. The market size is projected to reach USD 50.9 billion by 2026, with an expected five-year compound annual growth rate (CAGR) of 32.3%.
Based on IDC data, XREAL commanded an impressive 51% share of the global AR eyewear market in the third quarter of 2023. Notably, XREAL disclosed that it has successfully sold 350,000 AR eyewear units to date, achieving a remarkable 320% revenue growth in the first nine months of 2023.
In response to this strategic funding, XREAL stated, "The primary focus is on enhancing the company's mass production capabilities, with robust support and confidence from our newly introduced strategic investors."
Previously, major investors in XREAL included Shunwei Capital, Alibaba, Kuaishou, NIO Capital, YF Capital, Sequoia China, Gentle Monster, Hillhouse, Hongtai Aplus, CICC Capital, GPRO Investment, CPE, China Growth Captal, and iQiyi, among others.
Earlier this month, Rokid, another AR startup, announced the completion of a nearly CNY 500 million C+ round of financing, marking one of the largest strategic financings in the domestic AR sector in recent years.
In terms of revenue, Rokid reported a remarkable year-on-year growth of 200% in 2023, with the industrial sector leading the way and accounting for one-fourth of Rokid's overall revenue. The industrial sector's revenue from 2023 saw a substantial 100% year-on-year increase.
Rokid's products are currently in mass production and deployment across various projects, including the CGN Ningde Nuclear Power Project, State Grid AR Operation and Maintenance Inspection, CNPC AR Intelligent Inspection, Midea Group, and others.