Oura, the maker of smart rings, with offices in San Francisco and Finland, is reportedly preparing to raise as much as $3 billion as early as next month through a U.S. IPO that would value the company—which has more than 900 employees—at a staggering north of $16 billion, according to Bloomberg. The outlet notes that investors are expected to offload a significant portion of their shares in the offering.
A $16 billion valuation would represent a massive leap from the $10.9 billion valuation Oura received last September, when it wrapped up an $875 million Series E funding round backed by Fidelity, ICONIQ, Whale Rock, and Atreides, alongside earlier investors including Dexcom, The Chernin Group, Forerunner Ventures, Coatue, and Temasek.
The wearables market has become increasingly saturated.
Samsung rolled out its own ring, the Galaxy Ring, two years ago. However, Oura’s closest competitor may be Whoop, the fitness band maker that has undergone its own transformation. Previously a performance tool geared toward elite athletes and young men, Whoop has spent the past year targeting a wider demographic, adding features like hormone tracking and blood-panel testing for perimenopause and thyroid health. This pivot helped boost its own valuation to $10 billion back in March. Oura has charted a comparable course, transitioning from its original niche of biohacking CEOs to a more mainstream sleep-and-recovery brand.
Oura disclosed in May that it had confidentially submitted paperwork for an IPO.
The company has reported generating $500 million in revenue in 2024, approximately $1 billion in 2025, and projected close to $2 billion in revenue for 2026, though additional details will emerge once its S-1 filing is made public.
Not all of Oura’s recent news has been favorable. A proposed class action lawsuit filed last week in San Francisco alleges that Oura misled consumers regarding the accuracy of its sleep tracking capabilities. Among other allegations in the filing, Oura is accused of claiming “to measure a heartbeat or a temperature, but the exact stage of sleep the wearer is in—which in reality requires electrodes in the scalp and sensors on the eyes, as only a hospital or other clinical setting can do.”
In a statement provided to Techdaily over the weekend, a spokesperson rejected the claims in the lawsuit, stating that the company intends to “defend against them in the appropriate legal forum” and that “[w]hile Oura Ring is not a medical device or a substitute for a clinical sleep study, Oura’s sleep staging has been validated and compared favorably in multiple studies against polysomnography, the gold standard.” The statement further noted that “[m]ultiple third-party, independent studies support our claims of accuracy and we have transparently reported on the mechanisms and measures that inform Oura’s sleep staging.”