Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) earlier this week announced the acquisition of Designhubz, a Middle Eastern company known for its advanced virtual try-on technology. This all-stock deal, which grants Designhubz 500,000 shares restricted for six months, aims to expand Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF)’s offerings in the augmented reality (AR) space for e-commerce.
CEO Evan Gappelberg noted that the acquisition is timely, especially as capital markets remain challenging for smaller companies. Designhubz’s technology allows customers to virtually try on wearables, including glasses, jewelry, sneakers, and makeup. “We see this as a long-term play,” Gappelberg said, highlighting how the technology will add to Nextech3D.ai’s already robust 3D modeling platform.
One significant advantage of the technology is its ability to reduce product returns. Gappelberg pointed out that consumers who use virtual try-on systems typically generate 50% fewer returns, creating cost savings for online retailers. Nextech3D.ai sees this technology as crucial for expanding into new e-commerce sectors, such as jewelry and footwear. The company has already been in discussions with major players in the jewelry industry, which increasingly needs this type of technology to facilitate online shopping.
Gappelberg also expressed optimism about the future of virtual clothing try-ons, which he described as the “Holy Grail” of AR technology. While no company has fully developed this capability, Nextech3D.ai believes this acquisition will bring it closer to making virtual clothing try-ons a reality.
This strategic move positions Nextech3D.ai to maintain its leadership in the AR 3D modeling market, offering an end-to-end solution for e-commerce retailers. The company’s next steps include further integrating Designhubz’s technology, which Gappelberg described as “seamless” and easy for companies to adopt.