XREAL, a leading company in the field of spatial computing and augmented reality (AR), announced a significant milestone today. The company has successfully secured an additional USD 60 million in funding in its latest strategic fundraising round. This achievement brings XREAL’s total fundraising to an impressive USD 300 million since its inception.
The fresh infusion of capital comes as XREAL prepares to launch its highly anticipated product, the XREAL Air 2 Ultra, an advanced AR headset that promises to redefine the market. Notably, this round of fundraising includes contributions from a diverse group of investors, including prominent names like Alibaba, Nio Capital, Sequoia, Kuaishou, and Gentle Monster. However, the main contributor to this round remains confidential for the time being.
XREAL has earmarked the new funding for two critical areas: research and development, and factory expansion. The company plans to enhance its research capabilities to foster innovation in AR technologies. Additionally, the factory expansion is aimed at boosting the production of its proprietary optical engine, which is a cornerstone of XREAL’s globally acclaimed AR glasses.
Chi Xu, the CEO and Co-founder of XREAL, expressed his enthusiasm about the funding and the company’s trajectory. “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 Xu. Founded in 2017, XREAL has rapidly emerged as a unicorn in the AR glasses sector. “As we prepare for the spring launch of XREAL Air 2 Ultra, we are confident that our partnerships with developers, partners, and retailers will make its first year the most successful in AR history,” Xu added.
Earlier in January, XREAL reported that it had shipped 350,000 units of its AR glasses, a figure that underscores its leading position in the industry. The upcoming XREAL Air 2 Ultra, priced at USD $699, is set to compete with high-profile devices like the Apple Vision Pro and Meta Quest 3. With pre-orders already open and shipments expected to start in March, the XREAL Air 2 Ultra is touted as “the future of affordable, full-featured spatial computing.”
The timing of this fundraising and product launch is particularly significant, given the rapid growth of the AR industry. Market research firm IDC forecasts that worldwide spending on AR/VR headsets will reach $3.9 billion in 2023 and grow to $16.2 billion by 2027, representing a five-year compound annual growth rate (CAGR) of 32.6%. In line with these projections, XREAL has already captured a 51% share of the Augmented Reality headset market in the third quarter of 2024, as per IDC’s November AR/VR Tracker.
XREAL’s remarkable growth is further highlighted by its impressive revenue increase of 320% year-over-year in the first nine months of 2023. As the company gears up for the release of the XREAL Air 2 Ultra, it stands poised to solidify its leadership in the AR market and redefine the spatial computing landscape for consumers worldwide.