Ozlo, the wearable maker that revived the discontinued Bose sleepbuds, has banked $22M in Series B funding under Modi Ventures’ lead. Convertible notes issued earlier are folded into the total.
The Boston company has crossed 260,000 customers in under two years, a figure it reached largely on the back of Sleepbuds 2. That product, launched in July 2026, promises up to 14 hours of battery and an upgraded audio system, with a shape designed to stay comfortable for side sleepers.
The interesting part of the round is where the money goes. Ozlo is chasing regulatory clearance for a tinnitus product, and it is assembling the clinical evidence the FDA will want alongside consumer hardware sales.
That trajectory matters for a category still searching for a durable business model. Hearables are hardware with modest margins and fast upgrade cycles, whereas clinical indications bring reimbursement, physicians and a reason for customers to replace a device on medical advice.
Modi Ventures founder Sahir Ali argued Ozlo’s edge is comfort, and that the company could grow into a sleep health platform built on biosensing, AI and neuromodulation.
Partnerships are doing the groundwork: a product integration with Calm, research ties with academic institutions, and collaborations with elite athletes such as Canada Snowboard. Its clinical channel runs through Dreem Health, a US virtual sleep clinic that can assess, diagnose and treat sleep disorders.
Existing backers including LifeArc, Artis Ventures, Resmed and Scrum Ventures followed on, with angels from sport and wellness adding smaller cheques. Ozlo now has capital for international expansion, R&D and the slower work of winning over clinicians.
