How Ozlo, the creator of Sleepbuds, is developing a platform dedicated to sleep data

Ozlo Expands Its Sleep Technology into a Comprehensive Platform

Ozlo, known for its user-friendly and comfortable sleepbuds that help block out external sounds for improved sleep, is evolving its product into a broader platform.

This strategic shift began to materialize last month when Ozlo announced a collaboration with the meditation app Calm. The initiative gained momentum at this year's Consumer Electronics Show in Las Vegas, where Ozlo engaged with potential partners to further extend its ecosystem.

By joining forces with new collaborators, Ozlo aims to reach wider audiences and diversify its business beyond hardware, tapping into lucrative software subscriptions and healthcare services. For example, advanced AI-driven features or specialized tools for tinnitus relief could be offered as premium services. Additionally, Ozlo’s recent acquisition of a neurotechnology startup positions the company to expand into the medical device sector.

Building the Ozlo Ecosystem

Founded by former Bose engineers, Ozlo has always envisioned creating a connected ecosystem, according to co-founder and CEO NB Patil. “From the outset, we developed iOS and Android SDKs, so our own app is built on this foundation. This means any feature in our app can be made accessible to partners,” Patil shared during CES.

For instance, Calm leverages Ozlo’s SDK to determine whether its sleep and meditation content is truly effective for users. While Calm’s app alone can’t detect if someone has fallen asleep, Ozlo’s sensors can. By monitoring body movement and breathing patterns, the device collects data, which is then analyzed by a machine learning algorithm in the charging case to assess sleep or relaxation states.

The smart case also includes additional sensors, such as those for temperature and light, providing even richer data for analysis.

This information can now be shared with partner apps like Calm, enabling them to better understand user engagement and outcomes.

For example, if a user begins a breathing exercise, Ozlo can detect changes in respiration and share this feedback with its partners. If the exercise isn’t effective, partners can adjust their content accordingly.

Patil highlights two key aspects: responding in real time when a user reaches a desired state (such as automatically stopping sounds once the user is asleep), and providing valuable insights to content creators about the effectiveness of their material—an area often overlooked due to a lack of data.

Many creators of sleep and meditation content focus on quantity rather than measuring real-world impact, Patil notes. “They don’t actually know how their content performs because they lack actionable data.”

This collaborative approach also opens up new revenue opportunities for Ozlo, such as earning a share when users upgrade to premium partner subscriptions. Patil mentioned that Ozlo is already in talks with additional sleep and meditation apps, and this closed-loop feedback system could be applied to various types of content, including therapy sessions or audiobooks.

Ozlo is also developing tinnitus therapy solutions to help the 15% of its users affected by persistent ear ringing. In partnership with Walter Reed Hospital, Ozlo conducted a clinical study and discovered that playing specific masking frequencies overnight can help retrain the brain and reduce the perception of ringing.

These tinnitus therapies will be offered via subscription, with a planned launch in the second quarter of 2026.

AI-Powered Sleep Insights

Ozlo is enhancing the insights it provides to users, with artificial intelligence playing a growing role. In November, the company introduced Sleep Patterns in its app, enabling users to track their sleep duration, quality, and identify factors that may disrupt rest.

This year, Ozlo plans to launch an AI-powered “sleep buddy” that users can interact with via text. The app features a playful animated character named “buddy,” which appears when the case is opened and closed five times in a row.

By integrating with other wearables and Apple’s HealthKit, Ozlo aims to gain a deeper understanding of users’ sleep habits and needs. The company also plans to connect with smart home devices, such as thermostats, to automatically adjust the bedroom environment for optimal sleep as soon as the case is opened at night.

These AI-driven features are expected to become available in the second quarter.

Upcoming Devices and Enhanced Features

Ozlo’s next-generation charging case will address issues with earbud placement, featuring redesigned contours for a perfect fit and a Bluetooth button for easier pairing, according to Patil.

The updated device will also include a new antenna and extender for better range, as well as an amplifier to increase volume—ideal for blocking out loud environments like airplanes or trains. This hardware refresh is scheduled for release in Q2.

Additionally, Ozlo will introduce a bedside speaker in Q2, offering similar features to the Sleepbuds but designed for users who prefer not to wear earbuds. The compact 4×6-inch speaker will have its own sensors to monitor sleep interruptions, such as nighttime bathroom visits or falls.

This speaker will make Ozlo’s technology accessible to families with young children (who shouldn’t use earbuds at night) and older adults who may prefer a simpler, non-in-ear solution.

Looking ahead, Ozlo is exploring the addition of a gentle wake-up light to its products, though the launch timeline is still being determined.

Growth Through Strategic Acquisitions

Acquisitions are a key part of Ozlo’s expansion plans. The Boston-based company, which has a team of 60, recently acquired Segotia, an Irish neurotechnology firm specializing in EEG and “hearable” devices. This move will enable Ozlo to incorporate brainwave monitoring into its consumer products and eventually develop tools for real-time sleep intervention.

“We’re custom-designing an eartip capable of measuring electrical signals from the ear, which can be used to interpret brain activity related to sleep and alertness,” Patil explained.

A product featuring this EEG technology is slated for release in 2027, marking Ozlo’s entry into the medical device market.

With a busy year ahead, Ozlo must execute swiftly on new features and products to sustain its momentum and expand its user base. The company is also in the process of closing a Series B funding round, with more details expected soon.