Xreal, backed by Alibaba and competing with Apple's Vision Pro, asserts its status as an AR glasses unicorn.

 

Alibaba-backed Xreal, a company specializing in augmented reality (AR) glasses, announced on Monday that it secured $60 million in new funding, propelling its valuation to over $1 billion. This significant valuation positions Xreal as a unicorn, a notable achievement in the AR glasses industry, marking a milestone for the startup. The details of the participants in this funding round were not disclosed.

Augmented reality technology enables the overlay of digital images onto the real world, a concept that has gained traction in various industries. In contrast to its competitors, Xreal's latest AR glasses model, the Air 2 Ultra, is slated to commence shipping in March. It is currently available for pre-order at a price point of $699, offering a more affordable alternative to Apple's Vision Pro, which carries a higher price tag of approximately $3,500 and is set to be released in the U.S. on Feb. 2.

Xreal reported shipping 350,000 AR glasses since its launch in 2017, indicating steady growth with 250,000 units shipped as of October and 150,000 units as of May. The company aims to utilize the latest funding injection, bringing its total investor backing to $300 million, for research and development initiatives and expanding its manufacturing capabilities.

Contributions to this report were made by CNBC's Arjun Kharpal.