Chinese AR Startup Xreal Raises $60M in Hopes of Competing with Apple

Xreal, the China-based AR headset creator, announced it’s secured $60 million in its latest funding round which it hopes to use for product development and an expansion of production facilities.

Founded in 2017 and headquarted in Beijing, Xreal counts among its investors Alibaba, Nio Capital, Shunwei Capital, Sequoia China, YF Capital, Kuaishou, and Gentle Monster, among others.

This brings the company’s overall funding to $300 million, CEO Chi Xu told Bloomberg in an interview, however the company declined to identify the source of the latest investment. According to Xreal, the company now sports a billion-dollar valuation.

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“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 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.”

Xreal (previously Nreal) announced Air 2 Ultra at CES 2024, signaling a return for the company to augmented reality ahead of Apple’s entrance into the space with its $3,500 Vision Pro mixed reality headset.