Smart ring maker Oura Health Oy and some of its current investors are aiming to raise as much as $3 billion through a U.S. initial public offering. This IPO could value the company at over $16 billion, representing a significant increase from its $11 billion valuation last September after an $875 million Series E funding round. The offering is anticipated to take place as early as September, with existing investors expected to sell a substantial portion of their shares in the deal, although the terms are still subject to change.
Oura confidentially filed for an IPO in May and is working with an underwriting syndicate including Goldman Sachs Group, Morgan Stanley, JPMorgan Chase & Co., Allen & Co., and Jefferies Financial Group Inc. The company, founded in 2013 with headquarters in San Francisco and Finland, produces Oura Rings that track various health metrics like sleep, activity, and recovery. This IPO push comes as Oura has seen significant growth, projecting revenues to reach approximately $1.5 billion by 2026, a threefold increase from its $500 million revenue in 2024. Paid membership is expected to exceed five million this quarter, with cumulative ring sales surpassing 5.5 million units.
Despite the strong growth and IPO plans, Oura faces competitive and legal challenges. Samsung introduced its own smart ring two years ago, and rival fitness band maker Whoop holds a valuation of $10.1 billion. Furthermore, Oura is currently defending against a proposed class-action lawsuit filed in U.S. District Court in California, alleging that the company's rings do not reliably assess sleep stages. Oura has refuted these claims, stating that its sleep-staging technology has been validated against polysomnography, the gold standard, in multiple studies.
In preparation for the IPO, Oura has also been enhancing its AI capabilities, recently appointing its first chief information officer and senior vice president of AI and software engineering. The potential public listing would position Oura among a group of companies looking to complete their IPOs before the November midterm elections, highlighting a broader market trend.
