Chinese AR start-up raises $17m Series B
Hiscene, a China-based manufacturer of augmented reality (AR) glasses and communication systems that also goes by the name Liangfengtai, has raised RMB120 million ($17 million) in an extended Series B round of funding.
Participants include MYEG Capital, an investment arm of Malaysia-listed IT services provider My EG Services, technology-focused Junsan Capital, Chuangtu Capital, and Ondine Capital, a VC founded by former employees of CICC Capital and JD.com.
Existing investors Meitu, a Hong Kong-listed photo editing and social networking app developer, and V Star Capital, a GP spun-out from GGV Capital in 2016, both re-upped. The company claims to have raised over RMB220 million for the whole Series B round.
The new funding will go toward accelerating the commercial launch of the company’s products and services, according to a statement.
Founded in 2012, Hiscene has three major products: HiAR AR glasses; the HiLeia communication system attached to the glasses that facilitates remote collaboration between users; and a software development platform that allows external companies to develop AR related apps.
The company claims to have collaborated with Tencent Holdings, Alibaba Group, Huawei Technologies and JD.com. Its devices and platform have also been adopted by clients specializing in security, education, manufacturing, and marketing. They include public security bureaus in Yunnan province and Guangzhou, home appliance maker Gree Electric, SAIC Motor, US manufacturer Kohler, and Unilever. Overall, it has served more than 500 enterprise customers over the past six years.
The company positions itself as an “AR-as-a-service” provider as opposed to a pure manufacturer. “AR hardware production costs are going to become more transparent, which is likely to squeeze margins. I think the key to achieving profitability lies in a company's ability to provide better services to clients,” said Chunhua Liao, Hiscene's founder and CEO.
Another big opportunity for AR start-ups should come with the launch of 5G services in China, with super-fast wireless technology expected to support the mass commercial launch of AR services and devices, Liao added.
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