China AR glasses maker Nreal gets $100m Series C

CPE participated in the round as a new investor, while existing backers Capital, GL Ventures, and Sequoia Capital China re-upped.

The company raised $40 million in Series B funding led by local video-sharing platform Kuaishou in 2020. This followed a $15 million Series A in 2019 from Shunwei Capital, China Growth Capital, Aplus Capital, smart robotics developer Siasun, and video streaming company iQiyi.

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.

"We are committed to creating a more extreme user experience. Through the connection of AR glasses and smart phones, we will bring consumers a more immersive interaction paradigm and change people's existing ways of life and work," said Xu Chi, founder and CEO of Nreal, in a statement.

The company believes successful consumer-oriented apps have been lacking since the commercialization of 5G because mobile phones - with their small screens and pure 2D interactions - cannot present 5G content. Nreal claims that its AR glasses are the first to realize "5G+AR" as a consumer-level business model by serving as a new terminal that links with mobile phones.

It has several partnerships with established mobile service providers, including South Korea’s LG U+, Japan's KDDI, Deutsche Telekom, and UK-based Vodafone. The company also has more than 8,000 app development partners globally with whom it has created solutions across education, cultural tourism, and healthcare.

Earlier last year, Nreal opened a new headquarters in Wuxi High-Tech Zone, Jiangsu province. The facility includes a 26,000-square meter manufacturing base. Annual production capacity is scheduled to reach one million units this year.

In the augmented reality space, WiMi Hologram Cloud, which is backed by UOB Venture Management, completed a $26 million NASDAQ IPO in March 2020. 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.

Lighthouse Capital served as the exclusive financial advisor for Nreal's Series C.

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• Topics
• Greater China
• Expansion
• Technology
• Consumer
• China
• Yunfeng Capital
• Sequoia Capital
• GL Ventures
• GP Capital
• Nio Capital
• Growth capital