China mixed reality player Nreal secures $40m Series B

Additional commitments came from Sequoia Capital China, GP Capital, GL Ventures, and CCEIF - a fund co-launched by China Electronics Corporation (CEC) and China International Capital Corporation (CICC).

Founded in 2017, Nreal differentiates itself from other headset makers through form factor, claiming that its flagship product can recreate the vivid 3D graphics of conventional goggles with a more comfortable design that weighs about the same as a pair of normal glasses. It touts its display technology as an interactive mixture of virtual and augmented reality known as mixed reality (MR).

The company secured $15 million in a Series A round last year from investors including Shunwei Capital, China Growth Capital, Aplus Capital, smart robotics developer Siasun, and video streaming company iQiyi. The proceeds supported the release of its first consumer MR glasses - Nreal Light - which can be linked to a mobile phone.

In August, Nreal entered into a partnership with South Korean telecom operator LG U+ that will see Nreal Light included in 5G data packages. The product has already been customized to 5G flagship mobile phones released by Samsung and LG Group.

Meanwhile, Nreal has released a 3D operating system called Nebula to support Android applications launched through OneStore, Korea's official app store. The company claims to have built an end-to-end commercialization chain for MR glasses in Korea, from mobile phone manufacturers to telecom operators and content providers.

Earlier this year, Nreal opened its new headquarters in Wuxi High-Tech Zone, Jiangsu province. The facility includes a 26,000-square meter production base, the first phase of which is expected to come online later this month. By next year, annual production capacity is scheduled to reach one million units.

In the augmented reality space, WiMi Hologram Cloud, which is backed by UOB Venture Management, completed a $26 million NASDAQ IPO in March. The company generates the bulk of its revenue from holographic AR advertising software that allows users to insert real or animated 3D objects into video footage.

According to Frost & Sullivan, China's AR holographic market will generate RMB454.8 billion ($65 million) in revenue by 2025, with advertising and entertainment accounting for 31.6% and 39.6%, respectively. Industry revenue came to RMB3.6 billion in 2017.

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• Topics
• Greater China
• Early-stage
• Technology
• China
• CICC
• GL Ventures
• GP Capital
• Sequoia Capital
• TMT