Ozlo, known for its comfy Sleepbuds that help you block out unwanted noise for better sleep, is evolving its product into a broader platform.
The company’s vision started taking shape last month with a partnership announcement between Ozlo and meditation app Calm. This past week at the Consumer Electronics Show in Las Vegas, Ozlo met with potential partners to accelerate its plans.
These new collaborations could allow Ozlo to reach a wider audience and transition from solely focusing on hardware sales to lucrative software subscriptions and healthcare solutions. For example, they could introduce premium features utilizing AI or offering relief for users dealing with tinnitus. Additionally, a recent acquisition of a neurotech startup positions Ozlo to break into the medical device market.
### How Ozlo’s Platform Ambitions Began
Founded by former Bose employees, Ozlo always aimed to create an ecosystem, as co-founder and CEO NB Patil discussed at CES.
“We started by building the iOS and Android SDK—our primary app operates on that SDK. This means everything in our app can be accessible to anyone,” Patil said.
Calm, for one, uses this SDK to gauge whether its sleep and meditation content truly resonates with users. While Calm’s app can’t detect if a user has fallen asleep, Ozlo’s sensors can. They monitor body movements and respiration rates, sending this data to Ozlo’s charging case. A machine learning algorithm in the case assesses if someone is asleep or just relaxed.
Ozlo’s smart charging case includes additional sensors, such as temperature and light sensors, to gather more useful data.
This data can now be shared with apps like Calm.
For instance, if a user engages in a breathing exercise, Ozlo can monitor their respiration rate and relay that information back. If the exercise doesn’t work effectively, the partner app knows it may need to adjust its approach.
“There are two aspects,” Patil explains. “One is taking real-time action when the customer reaches a desired state (like our feature that stops sounds once the user falls asleep), and the other is crucial—content creators have to know if they’re investing in the right content.”
Patil points out that creators of meditation and sleep-aid apps often focus on volume but lack insights into their effectiveness.
“They don’t have an understanding of how it performs in real-life scenarios due to the lack of data,” he says.
This relationship could also be a new revenue stream for Ozlo beyond hardware sales. If a customer upgrades their subscription to a partner’s service, Ozlo could take a cut of that transaction.
Patil noted that discussions are already taking place with other sleep and meditation apps, but this closed-loop feedback system could apply to various content types, including therapy and audiobooks.
Ozlo is also developing tinnitus therapy tools targeting the 15% of its customer base affected by this condition. Last year, they collaborated with Walter Reed Hospital to conduct a clinical study and discovered that playing the right masking sounds overnight for several weeks could trick the brain into stopping the ringing.
Patil mentioned that tinnitus therapies will launch via subscription in the second quarter of 2026.
### An AI to Help You Sleep Better
Ozlo is focused on enhancing the insights it offers customers, with AI playing a crucial role. The company introduced Sleep Patterns in November to help users track their sleep quality, patterns, and disruptive factors.
This year, Ozlo plans to unveil an AI “sleep buddy” that users can text. The name was hinted at through a fun Easter egg within the app—a little animated character appears when the case is opened and closed in a specific sequence.
By integrating with wearables and Apple’s HealthKit, Ozlo aims to deepen its understanding of user patterns and sleep needs. They also plan to connect with IoT devices like smart thermostats to automatically adjust room temperature for optimal sleep as soon as users open their case at night.
These AI capabilities are expected to launch in the second quarter.
### New Hardware and EEG Insights on the Way
Ozlo’s next-generation case will fix issues with the earbuds sometimes not seating correctly in the charger.
“We redesigned the case’s contours—when you place the Sleepbud, it fits perfectly. Plus, we’re adding a Bluetooth pairing button,” Patil states.
The new device will also feature a redesigned antenna and extender for enhanced range and an amplifier to boost sound levels for drowning out noise from planes or trains. This updated hardware is set to launch in Q2.
Ozlo will also introduce a bedside speaker in Q2 that provides similar functionalities to the Sleepbuds but doesn’t require in-ear use. This 4×6-inch speaker will have its own sensors, enabling it to track wake-ups and alert caregivers if users fall.
This speaker will target families with children under 13, who shouldn’t wear earbuds at night, and it’s also ideal for elderly users who may prefer not fiddling with in-ear devices.
Ozlo plans to add a light feature to a product in the future, similar to the popular Hatch alarm clock, but the timeline is still being determined.
### The Acquisition Play
Acquisitions are also part of Ozlo’s growth strategy.
The Boston-based company, with 60 employees, just acquired Segotia, a neurotech firm from Ireland specializing in EEG technology. Ozlo sees this partnership as a way to bring brain-level insights into its consumer devices and develop real-time sleep intervention tools.
“We’re custom-designing ear tips that will measure electrical signals from your ear. From this, we hope to derive brain activity, revealing how the brain behaves during sleep or awareness,” Patil elaborated.
A product incorporating this EEG technology is expected to launch in 2027, allowing Ozlo to enter the medical products arena as well.
With a busy year ahead, Ozlo must effectively execute its new features and products quickly to keep pace and expand its customer base. They will also seek additional funding, with Patil revealing that the company is closing a Series B round soon, with updates to follow in the coming month.
