Mark Zuckerberg, Cristiano Ronaldo, Jennifer Aniston, and Prince Harry share a commonality: each owns an Oura Ring.
Oura, a Finnish company established in 2013, is poised for significant growth as its unique wearable technology gains traction in the mainstream market. Recent increases in demand are expected to result in sales doubling this year, approaching the $500 million benchmark.
Recently, Oura concluded a Series D funding round in December, spearheaded by Fidelity Management, which places the company’s valuation at $5.2 billion. This capital boost is a notable milestone, considering the company was valued at half that amount two years earlier.
The global wearable tech market is projected to grow by 14.6% by the decade’s close, with smart glasses and rings experiencing the most significant growth.
This surge in interest may only be the start of Oura’s rise, as the company plans to expand its offerings “beyond the ring” using the newly acquired funds, according to CEO Tom Hale. Hale mentioned to Fortune’s Leadership Next podcast, “We’re seeing kind of cultural relevance here in that Oura is becoming a shorthand for how you’re doing.”
The question arises: what makes Oura a formidable competitor to prominent brands like Apple in wearable tech?
Oura was created in Finland by Petteri Lahtela, Markku Koskela, and Kari Kivela, aiming to collect wellness data through a device worn on the finger. The startup launched a Kickstarter campaign in 2015, raising over $650,000 and surpassing its initial target sixfold. In 2016, Oura received a CES Innovation Award, establishing it as a notable tech startup.
From its inception, Oura’s focus on holistic wellness drew numerous users amid a growing health emphasis. The Oura Ring provides sleep insights, appealing to a specific customer base, as Hale explained to the Financial Times.
Oura’s app gives users a “Readiness Score,” a figure from one to 100 indicating daily preparedness based on health metrics such as sleep quality, heart rate, and body temperature.
“Wearable tech is for anyone who wants to better understand the state of their health and live more optimally for longer,” stated Hale.
Unlike smartwatches from Apple or Garmin, which offer daily usage or exercise tracking but may not be comfortable for all-day wear, Oura Rings integrate seamlessly as an accessory and feature extended battery life.
The latest model, the Oura Ring 4, introduced in October, aims for an even sleeker design.
Oura Rings may seem modest in size, but they are premium offerings featuring a subscription model costing $6 monthly, with the rings priced upwards of $350.
Focusing on wellness and longevity trends, Oura is strategically positioning itself in the tech market.
Known for attracting celebrity users, the Oura Ring has garnered credibility and influence over the past decade. CEOs particularly appreciate the device for providing detailed insights into daily energy levels.
For now, Oura leads the niche it created. CEO Hale confidently dismissed Apple’s potential entry into the wearable ring sector, positioning the Finnish company against a small but expanding group of competitors.
Hale noted that many individuals pair an Oura ring with another wearable, such as an Apple Watch, he told Fortune.
The competition includes Samsung, which recently launched the Galaxy Ring, sans subscription fees, manufactured by one of the world’s largest tech firms. Still, Hale remains unconcerned by the rivalry, arguing it highlights the unique value of this wearable tech category.
Meanwhile, the Oura Ring continuously finds ways to remain indispensable, featuring in marriage proposals and even reflecting public stress levels during events like Donald Trump’s election.
Among users, women are Oura’s fastest-growing demographic, with those aged 25 to 34 comprising a third of its female user base. Following Trump’s victory, concerns about the privacy of medical data arose, which Hale addressed by guaranteeing Oura would safeguard users’ information.
Hale emphasized to Fortune, “Our business model is to serve you, and our goal in serving you is to improve your health.” He contrasted Oura’s practices with those of competitors, highlighting Oura’s focus solely on user health.
(Note: This story was initially published on Fortune.com on December 20, 2024.)
