Alibaba leads Series C extension for China AR start-up Nreal
Nreal, a Chinese manufacturer of augmented reality (AR) glasses that resemble normal sunglasses, has raised an extended Series C of USD 60m led by Alibaba Group.
The proceeds will be used to increase R&D spending, expand application scenarios, and accelerate market expansion.
The company closed a Series C of USD 100m in September 2021 led by Nio Capital, Yunfeng Capital, and Hongtai Capital. This followed a USD 40m Series B led by short video platform Kuaishou in 2020 and a USD 15m 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. The company claims 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.
Its products have been launched in Japan, South Korea, the US and Europe, and there are plans to expand into China this year. In addition, the company has built a network of 8,000 third-party app development partners globally. Together, they have developed solutions across education, tourism, and healthcare.
Nreal is committed to creating an immersive interactive experience by connecting mobile phones and AR glasses. It believes successful consumer-oriented apps have been lacking ever since the commercialisation of 5G. This is because mobile phones - with their small screens and 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.
Recent progress includes a strategic cooperation arrangement with China-based media company Migu to promote 5G+AR content and the release of AR glasses for in-car entertainment with Nio. It also launched "Nreal Air" AR glasses in Japan in February, working with leading local telecom operators Docomo and KDDI.
Other recent investment activity in the AR space includes Rokid - a provider of AR solutions for enterprise use cases - raising USD 160m in Series C funding. Going further back, UOB Venture Management-backed WiMi Hologram Cloud completed a USD 26m US IPO in 2020. The company's holographic AR advertising software allows users to insert real or animated 3D objects into video footage.
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