Oura closes $200M round, boosting smart ring maker's valuation to $5.2B

Smart ring maker Oura pocketed an additional $125 million following a $75 million investment from medical device maker Dexcom last month.

The $200 million series D round boosts Oura's valuation to $5.2 billion, the company said Thursday. Fidelity Management & Research Company participated in the round along with Dexcom. Oura's smart rings track sleep, heart rate, activity and other health metrics.

"This financing reflects Oura's momentum in building and leading the smart ring category and the shared belief among its partners and investors that there are substantial growth opportunities ahead," the company said in a press release.

The company will use the fresh capital to expand its product offerings and fuel further investment in product, science and healthcare innovation, including AI, executives said. Oura also plans to expand into more international markets and explore additional acquisitions.

“As we continue to drive momentum and growth, we are bolstered by the additional support of these investors,” said Oura CEO Tom Hale in a statement. “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 center of our strategy. 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.”

The company, which launched out of Finland as a sleep tracking smart ring in 2015, has now sold 2.5 million rings. Oura has seen its member base and revenue more than double over the past year, according to the company.

It expects to see annual sales double in 2024 to roughly $500 million, and the company is profitable, Hale told Fierce Healthcare last month.

The Oura Ring's sensors collect data on more than 20 biometrics such as heart rate, heart rate variability, blood oxygen levels, body temperature, menstrual cycles and movement to track metrics like sleep patterns and activity levels. The company now has more than 1 million members.

Oura saw significant growth in 2024. It expanded its retail presence globally with new retail partnerships such as Amazon and Target and grew its commercial business with expanded military partnerships including the Naval Health Research Center, the Air Force and the Defense Innovation Unit. 

In November, along with the $75 million investment, Oura announced a partnership with Dexcom to integrate data from glucose biosensors with the Oura Ring. The two companies will launch integrations enabling data to flow between Dexcom products, including glucose biosensors and apps, and the Oura Ring and its app, the companies said. The first app integration resulting from the partnership is expected to launch in the first half of 2025.

As part of this integration, consumers who use both Dexcom glucose biosensors, including its over-the-counter product Stelo, and the Oura Ring can track their glucose levels and understand the impact of behaviors and biology on their metabolic health.

The company recently bought Sparta Science, an enterprise software company that developed a platform to collect and analyze health and fitness data from third-party sources. In 2022, the company launched its employer-focused wellness arm, Oura for Business.

The company also is broadening its ambitions with payers, seeing the potential to engage older seniors with digital health technology. During the HLTH 2024 conference in October, the company unveiled a unique partnership with Essence Healthcare, a provider of Medicare Advantage (MA) plans, to provide some MA plan members with an Oura Ring device and its app at no cost.

In September, Oura acquired Veri, a personalized metabolic health company.

The partnership with Dexcom also could hint at where Oura wants to go with its health tracking capabilities.

"Today, Oura is a standalone product, but I think we see a universe where the product experience includes all sorts of health data and health inputs and lots of different sensors, including CGMs," Hale told Fierce Healthcare last month. "I think this partnership is a great example of accelerating that vision. We are science- and research-forward, and I think there's lots to be learned. A lot of the glucose and the CGM science is based around diabetes. There's certainly going to be a large number of folks who are prediabetic who would fit into the category of people who might be interested in this combined solution. But, I think there's lots of things to be learned about other conditions or other circumstances that are just going to be really interesting to explore."