China’s Xreal raises another $60M to challenge Vision Pro, Quest

Chinese startup Xreal said it secured $60 million in the latest “strategic” investment round aimed at increasing the production of AR glasses set to compete with Apple Vision Pro and Meta Quest 3.

The latest influx of capital has brought Xreal’s total funding to $300 million and its current market valuation at over $1 billion, according to the Chinese news website 36Kr.

New funding will be used to ramp up the production of Xreal’s AR glasses to 2 million units per year by 2025, the website reported.

Xreal said earlier in January that it had sold more than 350,000 AR glasses since it was founded in 2017. It makes the firm a significant player in the field and a potential spatial computing rival to juggernauts like Apple and Meta.

Xu Chi, chief executive and founder at Xreal, told 36Kr that the company’s mission was “to bring AR wearable displays to every user worldwide.”

"We are further establishing Xreal's position as a globally leading and best-selling brand in AR glasses and spatial computing through technological iteration, product updates, and an open ecosystem," Xu Chi said.

Xreal is gearing up to release its new Air Ultra 2 headset in March. Priced at $699, it is more expensive than the $499 basic version of Meta Quest 3, but much more budget-friendly than Apple Vision Pro, which starts at $3,499.

The company did not specify who was behind the latest financial injection, but previous investors included Chinese tech giant Alibaba among others.