Roman GłogulskiChi Xu, the CEO of Xreal, has announced that the company is seeking fresh funding, with a valuation exceeding $1 billion. This move is aimed at staying ahead of potential competitors such as Apple, Meta Platforms, and Alphabet’s Google.
Xreal, a Chinese startup, plans to raise $60 million in this funding round, bringing its total funding to over $300 million. While Chi declined to identify the key supply chain partner involved, he noted that this new investment will allow Xreal to expand its manufacturing capabilities and continue its research and development efforts.
Xreal has established itself as a leading player in the augmented reality (AR) market. Their glasses, known as Air glasses, provide wearers with real-world visuals overlaid with data, games, and video. In the third quarter of last year, Xreal accounted for approximately 50% of the market for AR-only devices. However, in the larger mixed reality market, which includes virtual reality (VR) as well, Meta takes the lead.
Chi Xu revealed that Xreal has the capacity to manufacture between 500,000 and 1 million units of its glasses this year. With the new funding, the company projects a production capacity of 2 million devices in the following year. Xreal aims to generate $100 million to $150 million in revenue for 2024 and $200 million to $300 million in 2025. Chi also expressed his desire to take Xreal public in the United States within the next two years.
While Xreal currently has around 600 employees and is based in Beijing, its market reach extends globally thanks to its strong sales on Amazon.com. Xreal’s affordable AR glasses have proven popular among consumers, and the company is confident that its latest model, the Air 2 Ultra, will further drive revenue growth. Chi stated that Xreal aims to sell 50,000 units of the Air 2 Ultra this year and emphasized the importance of offering accessible products that meet customer preferences.
Xreal, however, does not plan to enter the virtual reality market. Chi believes that Xreal has an edge of three to five years over competitors in the AR space, including Apple. While acknowledging that other companies are catching up, Chi emphasized the need for Xreal to continue pushing boundaries in order to maintain their advantage.
As companies like Apple, Meta, and Google prepare to release their own consumer AR glasses, a dynamic and competitive market is on the horizon. Xreal is poised to make its mark as a pioneer in augmented reality technology.
The source of the article is from the blog mendozaextremo.com.ar
