Ozlo raises $22M Series B to expand sleep technology and develop new health products
Sleep technology company Ozlo has raised $22 million in Series B funding in a round led by Modi Ventures, as it looks to expand beyond its flagship Sleepbuds product into wider sleep and nighttime health applications.
The funding round included participation from existing investors LifeArc, Artis Ventures, Resmed, Scrum Ventures, Drive by DraftKings, Wheelhouse 360, WISE Ventures, Niremia Collective, Accelerate Ventures, and World Solver Syndicate. Several high-profile individuals also participated, including former NFL player Nick Foles, Olympic snowboarder Danny Davis, Whole30 founder Melissa Urban, and psychologist and author Michael Gervais.
The latest investment comes as Ozlo reports having surpassed 260,000 customers in less than two years. The company said the capital would support international expansion, further product development, and research into technologies addressing a broader range of sleep-related conditions.
A key area of development is tinnitus, with Ozlo continuing the regulatory work required to submit a product targeting the condition to the US Food and Drug Administration (FDA) for review.
The company also plans to increase investment in hardware, software, engineering, and research and development as it builds a wider portfolio of sleep-focused products and services.
“We’re now building on that foundation to address a much broader range of sleep needs,” said N.B. Patil, CEO of Ozlo. “We’re investing in research, technology, and new experiences that have the potential to expand the role Ozlo can play in people’s sleep and nighttime health.”
Expanding beyond sleep technology
Alongside developing new products, Ozlo is looking to strengthen its position in the wider sleep health market by working with clinical partners and research institutions.
The company has an ongoing product collaboration with sleep and meditation platform Calm, as well as partnerships with research institutions and elite sports organisations. These include Canada Snowboard, where Ozlo’s technology is being used to support athlete recovery and performance.
Ozlo has also partnered with Dreem Health, a nationwide virtual sleep clinic in the US, to connect customers with specialist clinical care. The collaboration is intended to provide a route from at-home sleep technology to professional assessment, diagnosis, and treatment of sleep disorders.
The company’s expansion strategy includes exploring how its hardware and software could address health conditions that affect sleep, with further investment planned in clinical research, partnerships, and consumer awareness.
Sahir Ali, founder of Modi Ventures, said the company’s focus on comfort had helped differentiate its products in the wearable technology market.
He added that Ozlo had the potential to develop a broader sleep health platform incorporating biosensing, artificial intelligence, and neuromodulation.
Sleepbuds drive early growth
Ozlo’s growth to date has been driven by its Sleepbuds, wireless earbuds designed specifically for overnight use. The devices use noise-masking technology to reduce disturbances such as snoring and traffic noise, with a design intended to remain comfortable throughout the night, including for side sleepers.
In July 2026, the company launched Sleepbuds 2, featuring up to 14 hours of battery life, improved connectivity, and an upgraded audio system.
Ozlo said its products had received recognition from several publications and industry organisations during 2025 and 2026, including TIME, Fast Company, CES, Forbes, and Sleep Foundation.
With its latest funding, the company is looking to build on the commercial traction of Sleepbuds while positioning itself in the broader sleep technology and health market.
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.
