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

Ozlo, the maker of comfortable, easy-to-use Sleepbuds that block external noise to help users rest better, is evolving its product into a broader platform.

The company’s strategy began to take shape last month with the announcement of a partnership between Ozlo and the meditation app Calm. That effort accelerated this week at the Consumer Electronics Show in Las Vegas, where Ozlo met with potential partners to expand its reach.

These new partnerships could help Ozlo access new audiences and build a business model that goes beyond consumer hardware, moving into higher-margin areas such as software subscriptions and healthcare. For example, AI-powered software features or tools designed to help users manage tinnitus could be offered through premium subscriptions. A recent acquisition of a neurotechnology startup is also expected to help Ozlo move beyond consumer products and into the medical device market.

How Ozlo’s platform ambitions began

Image Credits: Ozlo

Founded by former Bose employees, Ozlo was built to create an ecosystem, according to co-founder and CEO NB Patil, speaking on the sidelines of CES.

“The way we approached this from the beginning was by building the iOS and Android SDK, so our first-party app actually runs on that SDK. That means anything you see in our app can be made available to others,” Patil said.

Calm is using this SDK to understand better whether its sleep and meditation content is resonating with users. While Calm’s own app cannot determine whether a user has fallen asleep, Ozlo’s sensors can. The Sleepbuds track changes in body movement and respiration and send the data to the charging case, where a machine-learning algorithm determines whether a user is asleep or relaxed.

Ozlo’s smart charging case also includes additional sensors, such as temperature and light sensors, which provide more contextual data. This information can then be shared with Calm and other partner apps.

Image Credits: Ozlo

For example, if a user starts a breathing exercise, Ozlo can detect whether their respiration rate decreases and share that insight with its partner. If the exercise does not work, the partner can adjust the approach or content.

“So there are two parts,” Patil said. “One is taking real-time action when the user reaches the desired state [such as shutting off sounds once they fall asleep], and the other—just as important—is whether content creators are actually investing in the right content.”

Patil noted that creators of meditation and sleep-aid apps often produce large volumes of content without knowing whether it is effective. “They don’t really understand how it performs in the real world because there’s no data,” he said.

Image Credits: Ozlo

This data-sharing approach could also create an additional revenue stream for Ozlo beyond hardware sales. For instance, if a user upgrades to a partner’s subscription, Ozlo could take a portion of that transaction. Patil told TechCrunch that the company is already in talks with other sleep and meditation apps and that the same closed-loop feedback system could be applied to different types of content, including therapy programs and audiobooks.

Tinnitus therapy and subscriptions

Image Credits: Ozlo

Ozlo is also developing tinnitus therapy tools to address the ear-ringing issue that affects about 15% of its customers. Last year, the company partnered with Walter Reed Hospital to launch a clinical study, which found that playing the correct masking frequency overnight for extended periods can retrain the brain to stop producing the ringing sensation.

According to Patil, these tinnitus therapies will be offered via subscription and are expected to roll out in the second quarter of 2026.

An AI to help improve sleep

Ozlo is expanding the insights it provides to users, with AI playing an increasingly central role. In November, the company launched Sleep Patterns in its app, allowing users to understand how long and how well they sleep, track trends over time, and identify factors that may disrupt their sleep.

This year, Ozlo plans to introduce an AI agent that users can interact with as a “sleep buddy.” The name was previously revealed through an Easter egg in the app, where an animated character appears after opening and closing the case five times in a row.

By integrating with other wearables and Apple HealthKit, Ozlo aims to gain deeper insight into users’ habits and sleep needs. The company also plans to merge with IoT devices, such as smart thermostats, to automatically adjust bedroom temperature when users open their case at night. These AI features are expected to launch in the second quarter.

New hardware and EEG insights ahead

Ozlo’s next-generation charging case will address earbuds that do not always seat correctly. The company redesigned the internal contours so the Sleepbuds fit more precisely and added a Bluetooth button to simplify pairing.

The updated hardware will also include a redesigned antenna and extender for better range, as well as an amplifier to increase maximum volume when stronger noise masking is needed, such as during travel. This updated hardware is also expected in Q2.

In addition, Ozlo plans to launch a bedside speaker in Q2 that offers similar functionality to the Sleepbuds without requiring in-ear use. The 4×6-inch speaker will include its own sensor, enabling features such as tracking nighttime bathroom visits or detecting falls.

This product could appeal to families with children under 13, who are not advised to sleep with earbuds, as well as older users who prefer simpler, non-wearable solutions. Like the popular Hatch alarm clock, Ozlo is also exploring adding a light feature to gently wake users, though a launch timeline has not yet been set.

Image Credits: Ozlo

The acquisition strategy

Acquisitions are another part of Ozlo’s growth plan. The Boston-based company recently acquired Segotia, an EEG-focused neurotechnology firm based in Ireland that specialises in “hearable” technologies.

Ozlo believes this acquisition will enable it to deliver brain-level insights through its consumer devices and eventually develop tools for real-time sleep intervention.

“We are custom-designing an eartip that can measure electrical signals from the ear,” Patil said. “From there, you can derive delta signals from the brain and understand what the brain is doing during sleep or wakefulness.”

A product incorporating this EEG technology is expected to launch in 2027, allowing Ozlo to expand into the medical products space.

With a busy year ahead, Ozlo will need to execute across hardware, software, and partnerships to maintain momentum and grow its customer base. The company will also require additional funding. Patil told TechCrunch that Ozlo is currently in the process of closing a Series B round, with more details expected in the coming weeks.