Ozlo, the maker of comfortable and easy-to-use Sleepbuds that drown out outside noises for better rest, is turning its product into a platform.
The company’s plans began to take shape last month with the announcement of a partnership between Ozlo and meditation app Calm. But things really kicked into gear this week at the Consumer Electronics Show in Las Vegas, where the company met with potential partners to expand its reach.
These new partners could help Ozlo develop new audiences and build revenue models beyond consumer-centric hardware and into the high-margin software subscription and healthcare worlds. For example, software features that use AI or are designed to provide relief for users suffering from tinnitus may be offered as a premium subscription. And its recent acquisition of a neurotechnology startup will allow Ozro to move beyond consumer products and into the medical device market.
How Ozlo’s platform ambitions began
Founded by former Bose employees, Ozlo was always intended to build an ecosystem, Ozlo co-founder and CEO NB Patil explained on the sidelines of CES.
“The way we’ve done it from the beginning is we’ve built the iOS and Android SDKs, which means our first-party apps actually run on top of that SDK. That means everything that shows up in our apps is available to everyone,” Patil said.
For example, mental wellness company Calm uses the SDK to determine whether their sleep and meditation content is actually resonating with their customers. Calm can’t tell whether a customer has fallen asleep through its app, but Ozlo’s sensors can. The device detects changes in body movement and breathing rate, and the data is sent to the Ozlo charging case. There, machine learning algorithms determine whether someone is asleep or relaxed.
Ozlo’s smart case also has other sensors such as temperature and light sensors that can add more data.
Now, that information can be shared with apps like Calm.
For example, if a user begins a breathing exercise, Ozlo can determine whether their breathing rate has decreased and share that data with their partner. If this exercise fails, your partner will understand that you need to change the pattern or do something different.
“So there are two parts,” Patil points out. “Taking action in real time when the customer reaches a desired state (Ozlo does this with a feature that allows you to block out sound after the user has fallen asleep), and the other part that’s really important, but really something that content creators don’t really think about, is whether they’re investing in the right content.”
Patil explains that content creators of these types of meditation and sleep aid apps tend to invest heavily in their content without measuring whether it’s effective or not.
“The reality is they don’t understand how it works in the field because they don’t have the data,” he says.
The relationship also has the potential to add another revenue stream to Ozlo’s business beyond selling hardware. For example, if a customer is asked to upgrade their subscription to a partner’s product, Ozlo may receive a portion of that transaction.
Patil told TechCrunch that the company is already in talks with other sleep and meditation apps, but the closed-loop feedback system could be used for all kinds of content, including therapy and audiobooks.
Ozro is also working on developing tinnitus treatment tools to address the tinnitus problem that affects 15% of its customer base. Last year, the company began a clinical study of the problem in collaboration with Walter Reed Hospital and found that playing the right masking frequencies throughout the night for weeks can trick the brain into turning off the irritating signals that produce ringtones.
Patil said the tinnitus treatment will be available for subscription and will be rolled out in the second quarter of 2026.
AI that supports better sleep
Ozlo is also working to expand the insights it provides to its customers, with AI becoming an increasingly important element. In November, the company introduced sleep patterns within its app to help customers understand how long and how well they sleep, what their patterns have been over the past few weeks, and what factors may be preventing them from resting.
This year, Ozlo plans to introduce an AI agent that customers can send text messages to and use as a “sleep buddy.” (The company revealed the name of the AI agent “Buddy” in an Easter egg in the app. The app features an animated character “Buddy” that moves across the top of the screen when you open and close the case five times in a row.)
By integrating with other wearables and Apple’s HealthKit, Ozlo can better understand your patterns and what you need to sleep better. We also want to connect to IoT devices like smart thermostats to help users set the right sleep temperature as soon as they open the case at night.
AI capabilities are expected to be implemented in Q2.
New hardware, EEG insights on the way
Ozlo’s next generation case addresses an issue where earbuds may not attach properly to the charger.
“We’ve changed the contours of the inside of the case. When you put[Sleepbud]in it, it’s perfect. And we’ve added a Bluetooth button for pairing,” Patil says.
Additionally, the new device includes a redesigned antenna and extender to improve range, and adds an amplifier to boost headphone volume to drown out airplane and train noises if needed. This updated hardware will also arrive in Q2.
In terms of products, Ozlo plans to launch bedside speakers in the second quarter that offer similar functionality to Sleepbuds and don’t need to be placed in your ears. The 4-by-6-inch speaker also has its own sensors that can track the number of times you get up for a bathroom break, alert others if you fall, and more.
The speaker will allow the company to market to families with children under 13, as children are not encouraged to wear earphones at night. It may also make sense for older people who aren’t tech-savvy and don’t want to mess around with in-ear devices.
Similar to the popular Hatch alarm clock, Ozlo is working on adding a light to its products in the future to gently wake users up. (Release date is undecided.)
Takeover drama
Acquisitions are also part of Ozro’s growth strategy.
The Boston-based company, which has 60 employees, just acquired Segosia, an Irish EEG-focused neurotechnology company that is building “hearable” technology. Ozlo believes this will allow him to bring brain-level insights to his consumer devices and then develop tools for real-time sleep intervention.
“Essentially, we’re custom-designing an ear tip that measures electrical signals from the ear. We should actually be able to derive delta signals from the brain from that and learn about what the brain is doing in terms of things like sleep and consciousness,” Patil explained.
Products incorporating EEG technology will be released in 2027, making it possible to enter the medical product field.
With a busy year ahead, Ozlo needs to execute each new feature and product quickly and successfully in order to maintain its current pace and grow its customer base. Additional capital will also be required. Patil told TechCrunch that the company is currently in the process of closing a Series B round, with details to be announced within a month.
