Smart ring maker Oura is receiving a $75 million investment from medical device company Dexcom, setting the stage for the two companies to share data and sell products together. Dexcom is investing the amount as part of a Series D financing round, valuing Oura at more than US$5 billion (R$31 billion), according to a statement released on Tuesday. This represents an increase from the $2.6 billion valuation in the ring maker’s 2022 Series C round.
As part of the agreement, the companies will facilitate the integration of their products. Oura makes a line of rings starting at $249 that track fitness, sleep and health. Dexcom, in turn, sells continuous glucose monitoring systems commonly used by people with diabetes or at risk of hypoglycemia.
“The partnership is really about continuous glucose data coming into the context of Oura and becoming an Oura experience to help people change their behaviors,” Oura CEO Tom Hale said in an interview.
Earlier this year, Dexcom gained U.S. regulatory approval to sell the Stelo glucose monitor, an over-the-counter, shoulder-worn, continuous biosensor that costs $99 per pair and provides data via an app. The partnership will allow this data to be contextualized with other information collected by the Oura ring.
For Dexcom, the collaboration with Oura could make more people aware of Stelo and open up a new source of customers. “This is a mutually beneficial relationship,” said Matt Dolan, head of corporate development at Dexcom.
Glucose monitoring has become a bigger focus for technology companies. Apple has been working on a non-invasive glucose tracker and tested an app earlier this year that worked with third-party models. Ultimately, the company could combine glucose data with other information from its smartwatch and fitness app to offer a broader view of users’ health.
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Samsung, which competes with Oura in the smart ring market, has also explored developing a glucose monitor.
Hale said one in five Oura users has tried a continuous glucose monitor, and more than half want to try it. Nearly all of the company’s customers believe nutrition is an important part of overall health, he said.
The partnership will benefit from Stelo’s growing popularity and reduced glucose monitoring costs, Hale said. The companies expect the first stage of the agreement — the integration of data into applications — to take place in the first half of next year.
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A Bloomberg News previously reported that Oura is on track to double its revenue to $500 million this year. The privately held company has sold more than 2.5 million rings to date but has not yet taken steps toward an initial public offering.
Dexcom believes the partnership will help sell more Stelo devices.
“When you combine glucose data with the nutrition and activity data you get from Oura, you provide better insights,” said Dolan.
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