Smart ring startup Ōura raises $200 million as valuation jumps to $5.2 billion

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Ōura, the maker of smart health-tracking rings popular with celebrities and business executives, has raised $200 million in new financing, doubling its valuation from 2022 to $5.2 billion.

Founded in Finland in 2013, Ōura’s latest deal is one of the largest for a private European tech company outside of the artificial intelligence sector, which has absorbed a disproportionate share of venture capital funding this year.

Fidelity Management led Ōura’s latest round alongside US glucose monitoring group Dexcom, bringing its total capital raised to more than $550 million, according to the company.

Celebrity fans of Ōura rings include Prince Harry, Gwyneth Paltrow and Jennifer Aniston, executives at IBM and Delta, as well as Silicon Valley founders like Twitter’s Jack Dorsey, Salesforce’s Marc Benioff and Airbnb’s Joe Gebbia.

Its growing popularity has seen sales double this year to about $500 million, with total rings sold exceeding 2.5 million. Tom Hale, Ōura’s chief executive, has said the company is profitable.

Ōura said the funds would allow it to expand its products into new categories, invest in artificial intelligence and drive international expansion, as well as potential acquisitions.

“We know Ōura has the potential to change lives on a large scale and we are excited to continue leading the market in innovation as we pursue opportunities that extend beyond the ring,” Hale said.

Ōura started on Kickstarter, the crowdfunding site, in 2016.

Its rings, which cost more than $349 for the latest Ōura 4 model plus a $5.99-a-month subscription, track the wearer’s sleep, heart rate, body temperature and activity. A smartphone app converts this data into a personalized “readiness score” and offers advice on how to improve it.

The wearable technology and fitness tracker market has long been dominated by smartwatches like the Apple Watch. However, smartwatch unit shipments are expected to decline 3 percent this year, according to estimates from market research group IDC, while ring unit shipments are growing 88 percent, making them in the fastest growing type of wearable device along with smart ones. glasses like the Ray-Ban with Meta camera.

Larger tech companies are starting to take notice of Ōura’s success: Samsung launched its Galaxy Ring in July. IDC forecasts Smart ring shipments will grow from 1.7 million this year to 3.1 million in 2028.

Healthcare technology has been a bright spot for European startups this year, attracting $7.9 billion in venture capital in the first three quarters of 2024, according to Dealroom.