How Sleepbuds maker Ozlo creates a sleep data platform

Ozloa comfortable, easy-to-use “bed” maker blocking out outside noise so you can breathe well, and turn it into a product platform.

The company’s policy began last month with the announcement of a collaboration between Ozlo and meditation app Calm. But it took off at the Consumer Electronics Show in Las Vegas this week when the company met with potential partners to expand its reach.

These new partners can help Ozlo capture new audiences and create a revenue stream beyond consumer-focused tools and into the for-profit world of subscription apps and healthcare. For example, apps that use AI or are designed to provide relief to users with tinnitus may be offered as early registration. And the latest technological breakthrough should help Ozlo expand beyond being a consumer product to re-enter the medical device market.

How the desires of Ozlo’s tower begin

Founded by former Bose employees, Ozlo has always wanted to create the environment, Ozlo co-founder and CEO NB Patil explained on the sidelines of CES.

“The way we’ve done it since the beginning is that we develop iOS and Android SDKs – so that our first-party software works on the SDK. This means that everything you see in our software is available to anyone,” said Patil.

The mental health company Calm, for example, is using the SDK to determine whether its sleep and meditation practices are working with its customers. While Calm can’t tell from its app whether customers have fallen asleep, Ozlo’s sensors can. The device detects changes in body movement and breathing, and the data is sent to Ozlo’s case. There, machine learning determines whether someone is asleep or relaxed.

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

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

For example, if a user starts exercising, Ozlo can detect if their breathing has decreased and share that information with a friend. If the project is not successful, the partner will know that they need to change or do something else.

“So there are two parts,” says Patil. “Acting in real time when the customer has achieved what he wants (what Ozlo does with his features that can block the voice of the user while he sleeps) is another part, which is very important, especially – which the product developers don’t really think about – and, are they selling what is right?”

Patil explains that the developers of these types of meditation and sleep aid programs tend to invest a lot of money without testing whether or not the content in the group works.

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

The partnership could also add additional revenue to Ozlo’s business beyond the sale of equipment. For example, if a customer is asked to add their subscription to a partner’s product, Ozlo can take part of that sale.

Patil told TechCrunch that the company is already in talks with other sleep and meditation apps, but this closed-loop response system could be used with any type, including medication or audiobooks.

Ozlo is also working on a tinnitus treatment device to treat the hearing loss that affects 15% of its customers. The company teamed up with Walter Reed Hospital last year to begin clinical research on the condition and found that playing the appropriate masking tape all night for several weeks can trick the brain into suppressing the irritating signals that produce noise.

Patil says the tinnitus treatment will be available through subscription and will be released in the second quarter of 2026.

AI to help you sleep better

Ozlo is also working to improve the experience it provides to its customers, and AI is an important part of it. The company It launched Sleep Strategies within its program in November helping clients understand how long and how much sleep they’ve slept, how they’ve been doing in the past few weeks, and what factors may be interfering with their sleep.

This year, Ozlo plans to introduce an AI assistant that customers can text and use as a “bedmate.” (The company revealed the “buddy” name of its AI assistant in an Easter egg inside the app. The app displays a cartoon character – “buddy” – that moves across the top of the screen when you open and close it five times in a row.)

By integrating with other wearables and Apple HealthKit, Ozlo will be able to better understand the user’s condition and what they need to sleep well. It also wants to be able to connect with IoT devices, such as smart thermostats, to set the right temperature for users as soon as they open the case at night.

AI features are expected in the second phase.

New equipment, EEG information on the way

The next Ozlo case will solve the problem of the ears sometimes not sitting properly on the charger.

“We changed the contours inside the case – when you put it (sleepbud), it’s good. Then we’ll have a Bluetooth button to connect,” Patil says.

In addition, the new device will include a redesigned antenna and an extension for better control, and an amplifier will be added to improve the sound quality of the headphones to block out airplane and train noise, when needed. These updated devices will also arrive in Q2.

In terms of products, Ozlo will launch a bedside speaker in Q2 that will offer the same functionality as Sleepbuds, but without the need to go into the ear. The 4×6-inch speaker may also have its own sensor, allowing it to do things like track how many times you’ve woken up for a nap, or alert others if you’ve fallen.

The speaker allows the company to sell to families with children under 13, because children are not advised to wear earplugs at night. It can also make sense for older people who are not tech savvy and don’t want to look at hearing aids.

Like The famous Hatch watchOzlo is working on increasing the brightness of the object in the future to slowly wake you up. (The start time is still awaited.)

A shopping spree

The acquisition is part of Ozlo’s growth strategy.

The 60-person, Boston-based company recently acquired Segotia, an EEG-focused neurotech company based in Irelandwhich has been building “sound” technologies. Ozlo believes this will make it possible to bring brain-level data to its consumer device and eventually develop real-time sleep monitoring tools.

“Basically, we like to make an ear that measures electrical signals from your ear. From there, basically, you can get delta signals from the brain, and you should be able to tell what your brain is doing when you’re sleeping, or when you’re conscious, and all that,” Patil explained.

A device incorporating EEG technology will be launched in 2027, allowing the company to re-enter the medical field.

With a busy year ahead, Ozlo needs to be successful in every new product and sell fast to keep moving forward and grow its customer base. It will also require additional funding. Patil told TechCrunch that the company is in the process of closing Series B now, with more to come in the next month.