WayRay, a start-up headquartered in Switzerland has raised $18 million in funding in a series B round spearheaded by Alibaba Group Holding Ltd (NYSE:BABA). The company specializes in the development of augmented reality products for cars, a field that is growing fast. This is perhaps the reason why the Chinese e-commerce giant wants to test its waters.

For the last four years since its inception in 2012, WayRay has been developing patented holographic AR displays. It has been regarded as the world’s only developer that put together augmented reality systems into cars. Its founder and CEO, Vitaly Ponomarev cites that the company’s system gives it an advantage over traditional head up displays.

 Alibaba on a mission to invest in virtual, augmented reality

Notably, this is not the first time that the e-commerce giant is expressing its interest in VA and AR. It has led two funding rounds in 2016; $793.5 million in Florida-based AR firm Magic Leap and $15 million into Israeli company Infinity AR. There is potential in the AR industry according to Alibaba’s senior investment director Ethan Xie.

“We believe there is huge potential in the development of leading-edge technology like augmented reality and its application to various industries, like Wayray’s AR navigation system in the auto sector,” says Xie.

WayRay has also announced its syncing with Banma Technologies

Banma Technologies, which is an independent startup, will also be part of WayRay’s and Alibaba’s venture. The three will put together their expertise and resources in the development of a new AR car navigation and infotainment system. They will also be tasked with the creation of a highly developed AR HMI that incorporates augmented reality navigation.

The new system will first be tested on one of Banma’s 2018 car models. According to Alex Shi, CEO of Banma , there is a future in a holographic AR head-up display (HUD). The collaboration will also facilitate entry into China, the largest car market in the world.

So far, WayRay has been able to raise a total of $30 million. With its existing investors including Sistema, word has it that it is seeking to open its first China office in Shanghai. It is also planning to collaborate with other car manufacturers in China and the US to develop embedded AR interfaces.

In the meantime, Alibaba’s stock closed at $104.25 a decline of $0.93 or 0.88%.