According to reports, wearable technology startup Ultrahuman is looking to earn $30–40 million in a fresh fundraising round. SoftBank Vision Fund may lead the investment, which may greatly expand Ultrahuman’s product range and global footprint. The possible effects of this decision on Ultrahuman, its investors, and the larger wearable technology market are examined below.
Strengthening Ultrahuman’s Global Expansion Plans
Ultrahuman has its eyes set on scaling its operations, particularly in international markets like the US and UAE. The company announced plans to open its first UltraFactory in the US earlier this year, signaling its intent to boost manufacturing capacity and reach a broader customer base. With 88% of its revenue already coming from international markets, further capital infusion would allow the company to expedite these efforts.
Increased funding could help Ultrahuman accelerate its entry into more global markets, competing with established wearables brands such as Oura and Apple. A stronger presence in high-demand regions like the US would likely increase its market share and influence in the competitive smart ring segment.
Enhanced Product Range and Manufacturing Capacity
Ultrahuman’s product portfolio, led by its M1 continuous glucose monitoring device and the Ring AIR, a smart ring tracking sleep and activity, has been pivotal to its rapid growth. The company holds a leading 48.4% market share in India’s smart ring category, and with SoftBank’s investment, Ultrahuman could expand its product line further.
With a planned ramp-up in Ring AIR production from 15,000 units a month to 100,000 units by FY26, Ultrahuman is preparing for a significant scale-up. The new funding would enable the company to meet the rising demand for its devices, especially in premium markets where the adoption of health-focused wearables is high. This expansion could place Ultrahuman in a strong position to take on global competitors.
Competing with Global Giants: The SoftBank Effect
One potential game-changer is SoftBank Vision Fund’s involvement into Ultrahuman’s fundraising round. SoftBank has a track record of rapidly growing businesses and is well-known for supporting innovative technology firms. This is even more significant because, if the acquisition goes through, it might represent SoftBank’s first new investment in the past two years. SoftBank has been cautious when making new investments, but it has actively backed its portfolio firms, such as Whatfix and Meesho.
SoftBank’s investment would demonstrate the company’s faith in Ultrahuman’s long-term prospects and business plan in addition to providing financial strength. SoftBank is interested in the AI-based software that Ultrahuman is creating, which indicates that the wearable company’s emphasis on fusing hardware with AI-driven insights is a significant differentiator. This might improve Ultrahuman’s position in the world market for wearables by giving it with a competitive edge over brands like Oura and Apple, which have dominated the segment.
Challenges and Opportunities in the US Market
Although Ultrahuman’s global appeal is growing, obstacles stand in the way of its US market penetration. Rivals such as Oura of Finland, the global leader in the smart ring market, are well-established. Ultrahuman intends to make a major statement, as evidenced by its recent US alliance with Verizon; but, the company’s ability to stand apart from the competitors will be key to its success in this market.
Ultrahuman’s pricing plan is one of its main advantages. For those seeking long-term savings, Ultrahuman is a more alluring alternative than Oura, which needs users to pay a $6 monthly fee in order to access all functions. With SoftBank’s support in particular, Ultrahuman may be able to successfully use this pricing strategy to carve out a sizeable share of the US market.
Potential Legal Hurdles: The Oura Lawsuit
The legal dispute between Ultrahuman and Oura is one potential obstacle in the future. Oura filed a lawsuit against Ultrahuman in November 2023, alleging that the latter had stolen its smart ring technology and obtained confidential data. If this litigation is not handled correctly, it may affect Ultrahuman’s intentions for expansion and harm the company’s reputation.
Nonetheless, Ultrahuman might make an investment to settle the legal dispute and carry on with its development trajectory if it had access to significant funds. The lawsuit’s verdict will probably have a significant impact on how Ultrahuman’s global expansion—especially in the US—turns out.
