Oura Valued at $5 Billion Following Deal with Medical Device Firm Dexcom

Table of Contents

Introduction

In a significant development in the world of wearable technology, Oura, the maker of smart rings, has announced that it has secured a substantial investment of $75 million from glucose device manufacturer Dexcom. This funding round marks Oura’s Series D and catapults the company’s valuation to over $5 billion. The partnership between Oura and Dexcom is expected to revolutionize the way users monitor their health by integrating data from both companies’ devices.

Background on Oura and Dexcom

Oura: Revolutionizing Wearable Technology

Founded in 2014, Oura has made a name for itself with its innovative approach to wearable technology. The company’s smart rings are designed to track various aspects of users’ health, including sleep patterns, physical activity, and nutrition. Oura’s mission is to empower individuals to make informed decisions about their well-being by providing them with accurate and actionable insights.

Dexcom: Pioneering Continuous Glucose Monitoring

Dexcom, on the other hand, has been a pioneer in continuous glucose monitoring (CGM) technology since its inception in 1999. The company’s devices enable individuals to track their glucose levels in real-time, helping them manage diabetes and make informed lifestyle choices.

Partnership between Oura and Dexcom

The partnership between Oura and Dexcom is a significant milestone in the world of wearable technology. With this collaboration, users will be able to integrate data from both companies’ devices, enabling a more comprehensive understanding of their health. The first app integration resulting from the partnership is expected to launch in the first half of 2025.

CEO Tom Hale on the Partnership

Ninety-seven percent of Oura Members have expressed interest in understanding how the food they eat impacts their health," said Oura CEO Tom Hale in a press release. "This partnership with Dexcom will enable us to empower our members to make informed decisions and adjust behaviors to positively impact their biometrics and long-term health."

Benefits of the Partnership

The integration of data from both companies’ devices is expected to have numerous benefits for users. For instance, Oura rings will eventually help users monitor their blood sugar levels, enabling them to make informed lifestyle choices.

Executive Vice President of Strategy and Corporate Development at Dexcom

Partnering with ŌURA gives us the opportunity to redefine the category again, integrating data from Dexcom glucose biosensors with the continuous insights and metrics measured by Oura Ring," said Matt Dolan, executive vice president of strategy and corporate development at Dexcom. "This powerful combination will attract new shared customers who want to better understand the link between activity, sleep, nutrition, and their glucose."

Marketing and Sales Strategies

As part of the partnership, both companies will co-market and cross-sell each other’s products. This strategic move is expected to increase sales and expand the reach of both Oura and Dexcom.

Recent Developments at Oura

Earlier this year, Oura announced that it had sold 2.5 million rings. The company also revealed that it expects to see annual sales double in 2024 to roughly $500 million and that it’s profitable.

Apple’s Efforts in Non-Invasive Glucose Monitoring

The partnership between Oura and Dexcom comes at a time when Apple has been working on non-invasive glucose monitoring for many years. A recent Bloomberg report indicates that the company is testing an app that helps people with prediabetes to manage their health. Although Apple doesn’t plan to release the app, it could integrate the technology into future products, such as a non-invasive glucose monitor.

Conclusion

The $75 million investment from Dexcom is a significant milestone for Oura, catapulting its valuation to over $5 billion. The partnership between the two companies is expected to revolutionize the way users monitor their health by integrating data from both devices. With this collaboration, users will be able to make informed decisions about their well-being and adjust behaviors to positively impact their biometrics and long-term health.

Future Developments

The first app integration resulting from the partnership is expected to launch in the first half of 2025. This marks an exciting development in the world of wearable technology, and users can expect more innovative solutions from Oura and Dexcom in the future.

Biotech & Health