Augmented reality headsets have been around for years, but none of the market players have gone beyond the tech demographic and into the mainstream. The AR startup hopes to change that by teaming up with an eyewear fashion brand.
Funded Chinese AR headset maker Nerel said Thursday it has raised $15 million from Korean sunglasses brand Gentle Monster’s mother company IICOMBINED.
The investment, which comes five months after a $60 million Series C extension, brings total revenue raised since its 2017 inception to $240 million.
The fresh capital will enable Nreal to accelerate its global expansion and double the company’s consumer business in the US, the company said.
Neither Nerell nor Gentle Monster have said much about how they will work together, but Single Investor Capital is certain to mark a step toward a strategic partnership. Designed to be fashionable and lightweight from the start, it’s no surprise that Nerel’s sunglasses have hit the shelves of Gentle Masters. International retail stores one day.
In fact, Nreal co-founder Peng Jin said the company’s goal for the next twelve months is to “reach a wider audience and advance AR technology, starting with the latest Nreal Air glasses.”
Nerel has developed a global distribution network through its corporate partners such as Qualcomm and LG, including the US, UK, Japan, South Korea, Spain and Germany. It was founded in China only in August.
Nirail’s demand is currently highest in the US, Japan and Korea, although the company expects China to soon become one of its key markets.
Earlier this week, Nreal unveiled its range of products, including AR glasses such as Nreal Air and Nreal X (Chinese version), and an AR adapter for Apple devices in the home market.
“As we expand the sector’s consumer base, fashion and design will be important aspects of AR glasses development in the future,” Jin said. “So having Gentle Monster as our investor opens up exciting opportunities not only for Nreal, but also for the broader AR industry.”
In the year Gentle Monster, which entered China in 2016 and partnered with Huawei to produce smart glasses in 2019, opened its 17th store in Beijing in early August for further expansion in China.
“This investment is an exciting combination and exploration of the frontiers of fashion and technology,” said Hancock Kim, founder of Gentle Monster and CEO of IICOMBINED. “We will make joint efforts to create more opportunities using the strengths of both parties.”
