Photo - XR upgrade
62961

XR upgrade

Transforming E-commerce with 3D Product Experiences

Germany
Market: Virtual and Augmented Reality
Stage of the project: Operating business

Date of last change: 19.12.2024
Sale price
$  2.800.000
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Does the enterprise work?

Yes

Idea

XR upgrade is at the forefront of revolutionizing online retail through seamless integration of Extended Reality (XR) technologies. We're not just envisioning the future of e-commerce—we're actively building it.

Our Mission:
To transform web-based shopping into an immersive, engaging, and interactive journey that bridges the gap between digital convenience and in-store experience.

Core Solutions
1. 3D Product Visualization
2. Real-time 3D Customization
3. Interactive Product Assistant
4. Immersive Room Configuration

Current Status

XR upgrade launched in August 2024.

Software ecosystem in production with a hybrid business model: service-based product digitalization and a tiered SaaS model.

We already have projects for premium EU organizations such like HWA AG, Floyd Suitcases, Kübler Sport, Stemo, Ambiente Direct, etc.

Listed on AWS marketplace and registred AWS partner

On the first Google search page with search-term "XR e-comerce"

Ready for Seed-Stage-Fundig

Annual sales, $

280000

Organizational form

Private Limited Company (GmbH): Based in Germany, adhering to EU standards for data privacy, intellectual property, and operational transparency.

Number of employees

8

Problem or Opportunity

E-commerce faces persistent challenges:

Lack of immersive, interactive product experiences reduces engagement and increases return rates (up to 30% of all purchases).
Increasing demand for personalized and configurable products in digital environments.
High costs and inefficiencies in creating and maintaining product media (e.g., photoshoots, manual 3D modeling).

Opportunity: The global augmented and mixed reality market is growing at an 79.2% compound annual growth rate, with the total addressable market (TAM) expected to reach €994.25 billion by 2030. XR Upgrade is positioned to lead this transformation by providing innovative 3D and XR solutions, enabling businesses to enhance customer engagement and reduce operational inefficiencies​

Solution (product or service)

To maximize XR Upgrade's market position, key decisions include:

Fundraising: Secure €3,000,000 in funding, offering 100% equity in four 25% tickets, based on a conservative market valuation of €3.3 million aligned with PitchBook’s early-stage benchmarks for AR/VR companies in Europe.​

Scaling Operations: Expand production capabilities, invest in marketing, and onboard strategic partners to accelerate SaaS adoption.
Global Expansion: Prioritize partnerships with major platforms like Amazon, Google, and Meta while targeting growth in North American and Asian markets.

Competitors

Check Product and Buyer Deck

Advantages or differentiators

Cost-Effectiveness: Automated 3D pipelines save production costs by up to 60%.

Best Price-Performance-Quality Ratio: Best 3D Product Digitalisation Quality, SaaS subscriptions start at €48 per product/month, lower than most competitors.

Advanced Analytics: Integrated QR codes and interaction tracking offer actionable insights for businesses.

Proven Success: Demonstrated impact for premium clients like HWA AG, Floyd, and Ambiente Direct.

Finance

Revenue Streams:

Subscription-Based SaaS Licenses: Configurators, Assistants, and Asset Managers generate recurring monthly revenues (starting at €31 per product/month).

Custom Development Services: Projects include 3D digitalization, advanced product configurations, and AR/VR solutions.

Consulting & Training Services: Helping businesses integrate XR Upgrade solutions seamlessly.

Cost Structure:

Personnel: 60% of costs allocated to staffing, including 3D engineers, software developers, and business development and sales experts.

Technology: 10% allocated to infrastructure, including AWS hosting for 3D assets (costs approximately €1 per product/month for hosting).

Sales & Marketing: Leveraging industry partnerships and strategic campaigns (e.g., LinkedIn).

Business model

Business Model: Hybrid SaaS and service-based model. Tiered SaaS licenses ensure scalability, while service-based digitalization generates high upfront revenues.

Channels:

Direct Sales: Engaging directly with manufacturers, resellers, and retailers.

Digital Marketing: LinkedIn campaigns and SoMe content to attract decision-makers.

Partnerships: Collaborating with agencies and partner programs by platforms like Google and Amazon.

Metrics:

Customer Retention Rate: Targeted >80%.

Average SaaS Subscription License/Product: €26-28 per month.

Gross Margin: >60% on digitalization services and >90% on SaaS revenues.

Reason for sale

Seeking an early exit opportunity to attract strategic partners and investors capable of scaling XR Upgrade globally. The company is poised for explosive growth but requires capital and expertise to realize its full potential in the rapidly growing XR e-commerce market.

Market

Primary Customer Segments:

Manufacturers and Brands: Standardizing product showcases and delivering immersive digital experiences.

Retailers and Resellers: Offering interactive and customizable 3D assets to differentiate themselves from competitors.

Webshop Providers: Enhancing the value proposition of their platforms with plug-and-play XR solutions.

Market Metrics:

Serviceable Obtainable Market (SOM): €4.59 billion (assumes capturing 5% of the €91.80 billion SAM for the European XR market by 2030)​

Annual SaaS Revenue Projections: €8.64 million by year 5 from license subscriptions alone.

Risks

Market Saturation: As AR/VR adoption grows, new entrants could increase competition.

Technological Dependencies: Reliance on third-party platforms (e.g., AWS, Google).

Funding Risks: Failure to secure €3 million could delay scaling and market penetration.

Photos

Photo 1 - Transforming E-commerce with 3D Product Experiences
Photo 2 - Transforming E-commerce with 3D Product Experiences
Photo 3 - Transforming E-commerce with 3D Product Experiences
Photo 4 - Transforming E-commerce with 3D Product Experiences
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Does the enterprise work?
Idea
Current Status
Annual sales, $
Annual net income, $
Type of property
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Organizational form
Number of employees
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Business model
Reason for sale
Market
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Risks
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