Oura Seeks up to $3 Billion in IPO, Targeting Valuation Above $16 Billion
Oura is targeting a September initial public offering (IPO) aiming to raise up to $3 billion, according to Bloomberg. This would value the smart ring maker at over $16 billion, a significant increase from its $10.9 billion valuation last September.
The company, which filed confidentially for a US IPO several months ago, expects a large portion of the offering to come from existing shareholders selling their shares rather than from new capital, making it partly a liquidity event for early investors.
Oura closed a substantial $875 million Series E round last year with prominent investors including Fidelity, ICONIQ, Whale Rock, and Atreides, alongside earlier backers like Dexcom and Coatue. Today, the company employs over 900 people across its San Francisco and Finland offices, expanding beyond its initial audience of quantified-self enthusiasts and biohacking executives.
The sleep and recovery tracking market has been booming as users increasingly seek passive continuous measurement of these metrics. Oura’s ring is marketed as a convenient and effective way to track sleep, recovery, and readiness without the need for frequent charging or screen checks. The company’s latest hardware, the Ring 5, retails at $399, positioning it as the smallest smart ring on the market.
The success of Oura’s valuation hinges on its subscription revenue model, distinguishing it from a mere hardware multiple. Competitors like Samsung and Whoop have entered the space, with the latter reaching a substantial valuation and signaling IPO plans.
Oura has been involved in patent litigation against rival ring maker Ultrahuman, reflecting the growing competition in the category. Regulatory positioning is also crucial as Oura walks a fine line between wellness insights and medical diagnosis to avoid triggering device regulations.
Key information remaining undisclosed is Oura’s revenue and membership numbers, which will be revealed when the S-1 document is made public, offering a more comprehensive view of its valuation potential.