U.S. giant Unity acquires Israeli 3D scanning startup RestAR

U.S. company Unity announced on Tuesday the purchase of Israeli startup RestAR. RestAR has developed a technology for 3D scanning via mobile devices aimed at improving the online shopping experience. The details of the deal were not announced, but RestAR said that the investors in the company will receive a return of up to seven times their investment in less than two years.

RestAR, which is the first Israeli company to be acquired by Unity, will become the U.S. firm’s official R&D center in Israel. RestAR employees will join Unity from the company headquarters in Tel Aviv and the company intends to expand its activity and recruit additional developers. Unity is regarded as the world’s leading platform for creating and operating real-time 3D (RT3D) content for a wide range of sectors, including gaming, the auto industry, architecture, the movie industry and more.

RestAR was founded three years ago by Bar Saraf and Shimon Vainer. The company initially provided solutions for businesses in the restaurant industry by building 3D/AR (augmented reality) menus. However, the startup soon realized that the real challenge lies in creating 3D content for the e-commerce market and that the sector lacks an efficient solution.

The creation of quality 3D models is an expensive process that requires a lot of time, but RestAR's technology allows users to scan products in under one minute with a mobile device and without requiring any technical background or having to use any special hardware. The videos are then processed and compressed on the cloud. RestAR works with fashion brands and e-commerce platforms such as UGG, Off-White, Wix, Dafiti, Hoka One One, Palm Angels, Heron Preston, and many more.

RestAR has raised only $2 million to date. Among the company's investors are the investment fund of Wix, the 500 Startups accelerator, the former president of Walmart in Latin America, the founders of fashion website Dafiti, and others. The company said that it had the option of completing an additional $3 million round but chose an exit instead as the collaboration with Unity will allow for quick and significant growth of its product and technology.

RestAR is among the technology companies that received a boost during the Covid-19 crisis. The startup had struggled to bring clients on board prior to the crisis as awareness of the need to present products in 3D and AR was relatively low. However, the lockdowns resulted in many fashion brands being forced to shut their stores and turn to RestAR to receive solutions to increase their online sales and reduce the rate of return of products, resulting in an increase in income and clients for RestAR.

"The Covid-19 crisis created new and different consumer behavior in the world of commerce. The global expansion of e-commerce required retailers and brands to have a strong digital presence, distinguish themselves from the competition, and provide a rich user experience. With Unity, the world’s leading 3D platform, we will be able to change the rules of the game in creating visual content for businesses and dealers across the world so that without any previous knowledge, any business owner will be able to provide the best shopping experience for their clients," said Bar Saraf, CEO, RestAR.

Unity is currently being traded at a valuation of almost $40 billion and employs over 3,000 people across the world, including some 1,800 R&D staff. Apps developed by Unity creators have been downloaded more than five billion times per month in 2020.