Ozlo, recognized for its comfortable Sleepbuds that enhance sleep by blocking external noise, is evolving its product into a versatile platform.
This initiative started last month with a collaboration between Ozlo and the meditation app Calm and accelerated significantly at the Consumer Electronics Show in Las Vegas this week as the company engaged with potential partners to broaden its reach.
These new collaborations are expected to enable Ozlo to access fresh demographics and develop a revenue stream that extends beyond consumer hardware, venturing into the high-margin domains of software subscriptions and healthcare. For example, advanced software functionalities, such as AI-driven features or solutions for tinnitus relief, could be offered through premium subscriptions. Furthermore, a recent acquisition of a neurotechnology startup is poised to facilitate Ozlo’s transition from a consumer product company into the medical device sector.
How Ozlo’s Platform Vision Took Shape
According to Ozlo co-founder and CEO NB Patil, who spoke at CES, the company — established by former Bose employees — consistently envisioned building a comprehensive ecosystem.
Patil elaborated, “We designed the iOS and Android SDK from the outset, and our proprietary app actually operates on this SDK. This implies that any functionality present in our app can be extended to external partners.”
For instance, the mental wellness application Calm is utilizing the SDK to evaluate the efficacy of its sleep and meditation content. While Calm’s own application cannot ascertain if users have fallen asleep, Ozlo’s integrated sensors can. The device monitors changes in body movements and respiration rates, transmitting this data to the Ozlo charging case, where a machine learning algorithm determines if the user is asleep or relaxed.
The smart case is also equipped with additional sensors, including temperature and light, to gather more comprehensive data.
This information can now be shared with applications such as Calm and others.
For example, if a user initiates a breathing exercise, Ozlo could detect and report a reduction in their respiration rate, sharing this data with its partner. If the exercise proves ineffective, the partner would understand the need to modify the pattern or approach.
“So there are two parts,” Patil emphasizes. “Firstly, taking immediate action when the user reaches the desired state [which Ozlo already achieves by automatically silencing sounds once the user falls asleep] and the second, and very crucial, part — which content creators often overlook — is discerning whether they are investing in appropriate content.”
Patil explains that creators of such meditation and sleep-aid apps frequently prioritize quantity over effectiveness, largely because they lack the necessary data to gauge how their content performs in real-world scenarios.
“They genuinely don’t grasp how it operates in the field because there’s no data,” he states.
This collaborative model could also introduce an additional revenue channel for Ozlo beyond hardware sales. For instance, should a customer be prompted to upgrade their subscription to a partner’s service, Ozlo could receive a share of that transaction.
Patil informed TechCrunch that the company is actively engaged in talks with other sleep and meditation applications, noting that this closed-loop feedback mechanism could be adapted for various content types, including therapy sessions or even audiobooks.
Ozlo is also developing therapeutic tools for tinnitus, a ringing-in-the-ears condition affecting 15% of its user base. Following a clinical study initiated last year with Walter Reed Hospital, the company discovered that consistently playing specific masking frequencies overnight over several weeks can effectively trick the brain into ceasing the irritating signals responsible for the ringing.
Patil stated that these tinnitus therapies will be introduced as a subscription service in the second quarter of 2026.
AI-Powered Sleep Enhancement on the Horizon
Ozlo is actively working to enhance the insights it delivers to its users, with artificial intelligence playing an increasingly vital role. The company integrated “Sleep Patterns” into its app in November, offering users a clear understanding of their sleep duration and quality, weekly patterns, and potential disruptions.
This year, Ozlo plans to unveil an AI agent that users can interact with via text, serving as a “sleep buddy.” (The name “buddy” for this AI agent was subtly revealed as an Easter egg within the app: an animated character named “buddy” appears at the top of the screen when the charging case is opened and closed five consecutive times.)
By integrating with other wearable devices and Apple’s HealthKit, Ozlo aims to gain a deeper comprehension of individual user patterns and their specific needs for improved sleep. The company also intends to connect with IoT devices, such as smart thermostats, to automatically adjust the sleeping temperature for users as soon as they open their Sleepbuds case at night.
These AI functionalities are projected to launch in the second quarter.
Upcoming Hardware Innovations and EEG Capabilities
Ozlo’s forthcoming generation of its charging case will resolve the issue of earbuds occasionally not seating correctly.
“We’ve modified the internal contours of the case to ensure a perfect fit when you place the sleepbud. Additionally, it will feature a Bluetooth button for seamless pairing,” Patil explains.
Furthermore, the new device will incorporate a re-engineered antenna and extender for enhanced range, alongside an amplifier to boost sound volume, enabling it to effectively mask noises like planes and trains when necessary. This refreshed hardware is also slated for release in Q2.
In the second quarter, Ozlo will introduce a bedside speaker that offers similar functionalities to the Sleepbuds but eliminates the need for in-ear placement. This 4×6-inch speaker will include its own sensor, capable of monitoring activities such as bathroom breaks during the night or alerting others in case of a fall.
This product would allow the company to target families with children under 13, for whom earbuds at night are not recommended, and potentially older individuals who prefer less complex devices over in-ear solutions.
Ozlo is also exploring the future addition of a light feature, similar to the popular Hatch alarm clock, to provide gentle wake-up assistance, though a launch timeline for this is still under consideration.
Strategic Acquisitions for Growth
Acquisitions form an integral component of Ozlo’s expansion strategy.
The Boston-based company, with 60 employees, just acquired Segotia, an Irish neurotechnology firm specializing in EEG and “hearable” technologies. Ozlo anticipates this acquisition will enable them to integrate brain-level insights into their consumer devices and subsequently create tools for real-time sleep intervention.
“Basically, we are custom-designing the eartip that is going to measure the electrical signals from your ear. From that, actually, you can derive the delta signals from the brain, and you should be able to say what your brain is doing when it comes to sleep, or when it comes to awareness, and all that,” Patil explained.
A product incorporating this EEG technology is slated for release in 2027, marking the company’s entry into the medical products sector.
With a demanding year ahead, Ozlo faces the challenge of successfully executing each new feature and product in quick succession to maintain its current momentum and expand its customer base. This will also necessitate additional capital. Patil confirmed to TechCrunch that the company is currently in the process of finalizing a Series B funding round, with further details expected in the coming month.