Switzerland-based augmented reality navigation startup WayRay SA today announced it has closed a $18 million funding round led by Chinese e-commerce giant Alibaba Group Holding Ltd.

Along with the Series B funding news, WayRay also announced a partnership with Alibaba-funded connected car startup Banma Technologies Co. Ltd. to develop new AR car navigation and infotainment systems.

“At the moment, WayRay is the world’s only developer that integrates augmented reality systems into cars,” Vitaly Ponomarev, founder and chief executive of WayRay, said in a statement. “It gives us an advantage over traditional HUDs and provides the opportunity to collaborate with the largest global car brands.”

WayRay boasts the 2015 launch of Navion, what it calls the “first ever holographic navigator” for cars that uses AR technology to project a Global Positioning System, or GPS, info overlay onto the car’s windshield.

Just like a video game, users of the GPS need only follow green arrows projected as if onto the road in front of the car providing visual directions. More importantly, because the system displays on the windscreen, it does not require a cumbersome headset or eyewear worn by the driver. It integrates directly into the dashboard of the car.

The system also recognizes simple voice and gesture commands from the driver — eschewing turning of knobs or pressing buttons. The objective of the system is to allow the driver to spend more time paying attention to the road, with hands on the wheel. Many modern-day onboard GPS systems also recognize voice commands but require the driver to glance over at a screen.

Since launching in 2012, WayRay has used $10 million of its own funds, as well as angel and Series A venture capital, to develop AR-based navigation aids for cars. The company has also patented technology for transparent displays to be used in vehicles.

With this funding round from Alibaba, the company expects to work closely with Banma to develop integrated augmented reality navigation, driving assistant notifications, a virtual dashboard, entertainment systems and more. The new system is planned to appear in one of Banma’s 2018 car models, which would make the vehicle the first in the world with a built-in AR heads-up display.

Image: WayRay