A Single Ring Targets $22 Billion... The Secret to Its Valuation Is 'Data' [Weekend Money]

Oura, Smart Ring Manufacturer, Sets Sights on U.S. IPO

80% of Revenue Comes from Devices, But the Real Value Lies in 'Health Data'

"A Test That Could Reset the Valuation of the Entire Wearables Market"

Fitbit, considered a pioneer of the smartwatch boom, went public in 2015 with a market capitalization of 4.1 billion dollars (about 5.7 trillion won). Now, 11 years later, a new contender has emerged to challenge that record: Oura, a smart ring manufacturer that tracks and displays various health metrics. On September 3, the company filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC).

While the exact IPO date and offer price have yet to be determined, Bloomberg and other global media outlets have reported that the company could be valued at up to 16 billion dollars (about 22 trillion won). This is about four times the level of Fitbit's valuation.

The question then arises: How did a company that records a range of health metrics such as sleep, heart rate, body temperature, and activity levels—all with a single ring—achieve such a valuation?

In Just 10 Years, 1 in 2 Adults Wear Smartwatches... and the Money Is Following

Founded in 2013, Oura's smart ring has gained popularity among consumers who track health metrics such as sleep, heart rate, and activity levels, offering less fatigue compared to smartwatches that require daily charging.

About a decade ago, only one in eight U.S. adults owned a wearable device. Today, the figure is about one in two, reflecting how common it has become to wear devices on wrists or fingers.

This trend is mirrored in investment flows. According to venture capital (VC) data provider PitchBook, investments in wearable and health-tracking startups this year have reached 4.1 billion dollars (about 5.7 trillion won). A notable example is fitness wearable company Whoop, which raised 575 million dollars (about 800 billion won). This level of investment excitement is the highest since 2021.

However, investors point out that the current environment is fundamentally different from 2021, during the COVID-19 pandemic. The earlier boom was driven by heightened health anxieties, and most devices purchased ended up forgotten in drawers. Today, these devices have become essential items used daily, worn tightly on the wrists of actual users.

In fact, surveys show that 83% of wearable device owners wear them five days or more per week. The Oura Ring's average daily wear time is 23.8 hours—nearly all day.

80% of Revenue Comes from Devices... But the True Competitiveness Is in 'Data'

In its S-1, Oura described itself not as a ring manufacturer but as a "continuous health intelligence platform." The company also emphasized that its subscription service exhibits a "very high repurchase rate."

By the numbers, device sales still dominate. In the first half of this year (January to June), Oura's device revenue totaled 974 million dollars, accounting for 80% of its overall revenue. Meanwhile, monthly subscription (membership) revenue amounted to 240.5 million dollars.

But when looking at growth rates, the picture changes. During the same period, device revenue grew by 65% year-on-year, while subscription revenue increased by 121%. In other words, subscribers are growing at nearly twice the rate of device sales.

Device sales are a one-off revenue stream, but subscriptions generate recurring monthly revenue. Simultaneously, sleep, heart rate, and body temperature data from buyers accumulate daily. The longer this data accumulates, the harder it becomes for users to leave the service. In fact, surveys showed that less than one in four wearable device users switched brands.

Mike Collett, Managing Partner at Promus Ventures—a deep tech-focused VC in the United States—explained in an interview with PitchBook, "Establishing proprietary data superiority is now reflected in company valuations." As a key investor in fitness wearable firm Whoop, he added, "Companies with genuine moats built on data and strong customer retention earn a premium, while those that do not are priced on par with average hardware firms." This helps explain why Oura's valuation is being discussed as four times greater than Fitbit's.

Wearable Startups Face a Test... "Interest in Health Will Persist"

Samsung Electronics' Galaxy Ring

Oura's IPO is also expected to be an important test case for gauging the public market response to wearable firms. Investment dollars are reaching new areas beyond just health tracking. Last month, U.S.-based Legato raised 12 million dollars for a product combining eyeglasses with hearing assistance technology. Even Realities, headquartered in Shenzhen, became a unicorn company this July by raising 150 million dollars for its smartglasses, which support notifications, translation, and navigation.

Collett predicted, "If this IPO succeeds, the valuation benchmarks for the entire wearable sector will be reset, and other next-generation wearable companies will follow Oura into the IPO market." He also commented, "The desire for deeper personal health understanding will continue. Even if Oura's listing falls short of expectations, the demand underpinning this industry will not simply vanish."

This content was produced with the assistance of AI translation services.