Qualcomm Ventures Invests $70M in Ultrahuman to Develop Smart Rings as Computing Devices

Ultrahuman, a Bengaluru-based startup specializing in smart rings, has secured $70 million in a new funding round featuring participation from Qualcomm Ventures and other investors. This round values the company at approximately $365 million, a significant increase from its $120 million valuation earlier this year. The financing includes $65 million in equity and $5 million in debt. The startup is collaborating with Qualcomm to develop a new smart ring incorporating Qualcomm's silicon, aiming to enhance the device's processing power. Currently, Ultrahuman uses chips from Nordic Semiconductor but plans to integrate Qualcomm's technology to enable the ring to run more complex software and algorithms locally, reducing dependence on smartphones or cloud services. Ultrahuman's CEO, Mohit Kumar, explained that while existing smart rings primarily function as health trackers monitoring metrics like heart rate and sleep, the company's vision is to evolve the ring into a computing platform. This would allow developers to create applications that run directly on the device, expanding its use cases beyond health monitoring to include functions such as acting as a game controller, car key, or interface for AI interactions. Some of these new features are expected to be introduced via software updates to Ultrahuman's current Ring Air and Ring Pro models by the end of September. These updates will enable functionalities like gaming controls and AI application interaction, as well as opening the platform to third-party developers. Kumar highlighted the unique advantage of a ring worn on the finger, which can serve as a precise pointing device while simultaneously capturing physiological data such as heart rate and temperature. This combination could enable novel user experiences, such as games that respond to both physical movements and biometric signals. On the business side, Ultrahuman is experiencing growth with an annual revenue run rate of $140 million, up 45% year-over-year, and projects reaching $200 million by early 2027. The company has sold around 800,000 rings to date, with about 12% of users subscribing to its PowerPlugs software features. Ultrahuman was founded in 2019 and initially focused on continuous glucose monitors before shifting its primary focus to smart rings. The U.S. remains its largest market, although sales were temporarily impacted by a patent dispute with competitor Oura. Demand for Ultrahuman's redesigned Ring Pro in the U.S. currently exceeds supply by a factor of 18 to 20. The company plans to expand its presence in markets such as India and the UAE, emphasizing offline retail channels to boost sales. However, increased investment in physical stores, branding, and clinical research may delay profitability this year. Unlike some competitors considering imminent public offerings, Ultrahuman aims to achieve sustained profitability over eight quarters before pursuing an IPO, potentially targeting 2028 for a public listing. Additionally, Ultrahuman is deepening its partnership with Labcorp to explore integrating wearable data with blood test results. This collaboration could enhance health risk assessments in areas like cardiovascular health, fertility, and aging, potentially leading to new product features in the future.