RayNeo, a leading AI+AR technology company, announced the completion of its Series C financing round, marking the largest funding deal in China’s AR sector in 2025.
The round was led by CITIC Jinshi, with participation from CITIC Securities International Capital and CITIC Securities Investment. While the exact amount was not disclosed, sources familiar with the deal said it reached hundreds of millions of RMB, highlighting investor confidence in RayNeo’s leadership in the AI+AR field.
The company said the new capital will accelerate R&D for its AI-powered AR glasses and ecosystem development, further strengthening its global footprint. According to people close to the company, RayNeo’s current sales are split 60% domestic and 40% overseas, a ratio expected to tilt increasingly toward international markets. Following this latest funding, the company also plans to expedite its IPO process and could go public within the next two to three years.
Founded in October 2021, RayNeo has built expertise across near-eye optical display design, AI algorithm development, and multimodal human-computer interaction. Its product lineup spans smart glasses designed for real-time information overlay, immersive movie viewing, and AI-assisted photography.
The company is also the world’s only AR manufacturer to have achieved mass production of full-color Micro LED smart glasses, a milestone that has positioned it ahead of competitors both in China and abroad.
The AI+AR sector is emerging as one of the most promising technology frontiers, with analysts estimating China’s AR glasses shipments will reach 900,000 units in 2025. Industry forecasts suggest the domestic market alone could be worth hundreds of billions of yuan.
Official data shows that RayNeo’s products have reached more than 25 countries and regions, and according to Counterpoint Research, the company ranked first globally in AR glasses shipments in the second quarter of 2025, holding a 39% market share.
RayNeo has also been stepping up its partnerships. In October, the company teamed up with image processing chipmaker Pixelworks to launch the Vision 4000, the world’s first image-quality chip designed specifically for AR devices. The collaboration is expected to significantly enhance the visual performance of RayNeo’s products and signals the beginning of a new era of custom chips for AR glasses.
Li Hongwei, CEO of RayNeo, said the convergence of AI and AR technologies is transforming the industry and redefining the role of wearable devices. “Smart glasses are becoming the next core entry point after smartphones,” Li said. “This shift is being driven by breakthroughs in optics, AI, materials, and chips. We believe Chinese companies are now capable of moving from being followers to global leaders—setting standards and achieving breakthroughs in core technologies and products.”
The surge of investment and innovation in the AR space has also drawn major players into the race. In addition to startups like RayNeo, tech giants such as Xiaomi and Alibaba have entered the field, seeking to establish a presence in the next generation of computing. While their involvement could intensify competition, industry insiders see their entry as a positive development.
“The participation of large companies is a strong signal that the market is maturing,” Li said. “They bring expertise in branding, ecosystem integration, and user operations, which will help accelerate the entire industry’s growth.”
Li added that the AR glasses sector stands apart from earlier technology cycles because it represents an entirely new industry track. “From optical displays to spatial computing to application ecosystems, almost everything is new—these are things that didn’t exist during the mobile internet era,” he said. “RayNeo has accumulated years of experience and built deep technical barriers in this field. We respect our competitors, but we are confident about our position.”
With fresh funding secured, RayNeo plans to step up efforts to expand its product ecosystem and strengthen AI integration. The company is also exploring new marketing and retail strategies to make AR glasses more approachable for mainstream consumers.
“As AR devices move toward the mass market, the next five years will be crucial,” Li said. “RayNeo’s goal is not just to lead in technology but to redefine how people interact with the digital world.”
