Finnish startup Oura has closed its Series D funding round at $200mn, bringing the smart ring maker's valuation to a cosy $5.2bn.
Oura's smart ring uses 20 biometric markers to track sleep, physical activity, and stress resilience. The device displays this data on an app that gives you a personalised “readiness” score. We tested the wearable earlier this year and were genuinely impressed.
Founded in 2013, Oura secured its first funding on Kickstarter, the crowdfunding site, in 2016. Counting this new tranche of capital, the tech startup has raised $550mn since inception.
“We've made significant progress in advancing our mission to make health a daily practice and will use this funding to unlock new opportunities, with AI development at the centre of our strategy,” said Tom Hale, Oura's CEO.
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In 2022, Oura became a unicorn and sold its millionth ring. Two years on, the company claims to have recently sold its 2.5 millionth device and to have made $500mn in sales this year alone.
“We know that Oura has the potential to change lives at scale, and we're excited to continue leading the market in innovation while pursuing opportunities that extend beyond the ring,” said Hale.
Oura said it signed partnerships with key retailers such as Amazon and Target this year. The ring is especially popular with celebrities — including Prince Harry, Gwyneth Paltrow, and Jennifer Aniston. Even the Pentagon made a $96mn order in October to put the devices in (or should I say “on”) the hands of soldiers.
While sales of smartwatches flatlined this year, smart rings are surging in popularity. Global smart ring sales are set to almost double from an estimated 1.7mn by the end of 2024 to 3.2mn in 2028, market intelligence firm IDC.
For many users, they're seen as a more convenient option to smartwatches like the AppleWatch but still contain many of the same features. Smart rings also tend to move less and fit better against the skin.
Smart ring makers sold 880,000 units in 2023, said IDC. The Oura Ring made up 80% of these sales, soaring above competitors like Ultrahuman and Samsung.
By those figures, Oura genuinely does seem to be the current lord of the (smart) rings. Sorry, I couldn't help myself.
Fidelity Management led the funding round, which also saw the participation of Dexcom, a German provider of glucose monitoring sensors for diabetes patients.