How the Sleepbuds maker, Ozlo, is building a platform for sleep data

Ozlothe maker of comfortable, easy-to-use “sleep buttons” that drown out outside noise so you can rest better is turning its product into a platform.

The company’s plan began to take shape last month with the announcement of a collaboration between Ozlo and meditation app Calm. But things kicked into high gear this week at the Consumer Electronics Show in Las Vegas, as the company met with potential partners to expand its reach.

These new partners could help Ozlo tap into new audiences and build a revenue model beyond consumer-facing hardware and into the profit-margin world of software subscriptions and healthcare. For example, software features that use AI or are designed to provide relief to users with tinnitus can be offered as premium subscriptions. And a recent acquisition of a neurotech startup should help Ozlo grow beyond a consumer product and enter the medical device market.

How Ozlo’s platform ambitions begin

Founded by former Bose employees, Ozlo always intended to build an ecosystem, Ozlo co-founder and CEO NB Patil explained on the sidelines of CES.

“The way we did that from the beginning is we built the iOS and Android SDK so that our own app actually runs on that SDK. That means everything you see in our app can be made available to anyone,” Patil said.

For example, mental wellness company Calm uses the SDK to determine whether its sleep and meditation content actually resonates with its customers. Although Calm cannot tell whether customers have fallen asleep through its own app, Ozlo’s sensors can. The device detects how body movements and breathing rates change, and that data is sent to the Ozlo charging case. There, a machine learning algorithm determines whether someone is sleeping or relaxed.

Ozlo’s smart case also has other sensors, including a temperature sensor and a light sensor that can add more data.

Now that information can be shared with apps like Calm and others.

For example, if a user started playing a breathing exercise, Ozlo could see if his breathing rate had dropped and share that data with his partner. If the exercise is not successful, the partner knows to change the pattern or do something else.

“So there are two parts,” Patil notes. “Take real-time action when the customer reaches the desired state [which Ozlo does with its feature that can shut off sounds after the user falls asleep] and the other part, which is actually really important – which content creators don’t quite think about – is: are they investing in the right content?”

Patil explains that content creators for these types of meditation and sleep aid apps tend to invest in volume without measuring whether or not their content is effective.

“They don’t actually understand how it works in the field because there is no data,” he says.

This relationship could add a new revenue stream to Ozlo’s business in addition to hardware sales. For example, if a customer is asked to upgrade their subscription to the partner’s product, Ozlo can cover a portion of that transaction.

Patil told TechCrunch that the company is already in talks with other sleep and meditation apps, but this closed-loop feedback system can be used with any type of content, including therapy or even audiobooks.

Ozlo is also working on tinnitus therapy tools to address the tinnitus problem that affects 15% of its customer base. The company worked with Walter Reed Hospital last year to launch a clinical study on the problem and found that playing the correct masking frequency at night for many weeks can trick the brain into stopping the irritating signals that produce the ringing sounds.

Patil says the tinnitus therapies will be available via subscription and will be rolled out in the second quarter of 2026.

An AI that helps you sleep better

Ozlo is also working to expand the insights it offers to its own customers, and AI is an increasingly important component. The company launched Sleep Patterns within its app in November to help customers understand how long and well they slept, what their patterns are over the past few weeks and what factors can disrupt their rest.

This year, Ozlo plans to introduce an AI agent that customers can text and use as a “sleep buddy.” (The company revealed the name “buddy” for its AI agent in an easter egg in the app. The app shows an animated character – “buddy” – walking 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 users’ patterns and what they need to sleep better. It also wants to be able to connect to IoT devices, such as smart thermostats, to set the right sleeping temperature for users once they open the case at night.

The AI ​​features are expected in the second quarter.

New hardware, EEG insights on the way

Ozlo’s next-generation case will address the issue of the earbuds sometimes not sitting properly in the charger.

“We changed the contours in the housing – when you place it [the sleepbud]it’s perfect. And then we have a Bluetooth button for pairing,” says Patil.

In addition, the new device will include a redesigned antenna and extender for better range, and will add an amplifier to amplify the loud sound of the headphones, drowning out airplane and train noise, when necessary. This updated hardware will also arrive in the second quarter.

In terms of products, Ozlo will launch a bedside speaker in the second quarter that will offer the same functionality as the Sleepbuds, but doesn’t have to go in the ear. A 4×6 inch speaker would also have its own sensor, allowing it to track, for example, how many times you woke up for a bathroom break, or alert others if you had fallen.

The speaker would allow the company to market to families with children under 13, as children are not advised to wear earplugs at night. It may also make sense for older people who aren’t as tech-savvy and don’t want to mess around with in-ear devices.

Like the popular Hatch alarm clockOzlo is working on adding a light to a product in the future to gently wake you up. (The time frame for the launch is still being determined.)

The acquisition game

Acquisitions are also part of Ozlo’s growth strategy.

The 60-employee Boston-based company just acquired Segotia, an EEC-focused neurotech company from Irelandthat has developed ‘audible’ technologies. Ozlo believes this will make it possible to bring brain-level insights to its consumer device and later develop tools to perform real-time sleep intervention.

“Basically, we custom design the earbud that will measure the electrical signals from your ear. From that you can actually derive the delta signals from the brain, and you should be able to tell what your brain is doing when it comes to sleep, or when it comes to consciousness, and all that,” Patil explains.

A product incorporating EEG technology will be launched in 2027, allowing the company to also enter the field of medical products.

With a busy year ahead, Ozlo will need to get every new feature and product right quickly to maintain its current pace and grow its customer base. Additional capital will also be needed. Patil told TechCrunch that the company is now in the process of closing a Series B round, with more details to follow in the coming month.