As its flagship product faces a sales halt in the US, the smart ring maker secures new venture debt to sustain momentum and protect long-term growth
Strategic Capital Raise Amid a Crisis
Ultrahuman, the Bengaluru-based smart ring manufacturer, has raised INR 100 Cr (~$11.2 Mn) in venture debt from Alteria Capital, signaling a bold push to sustain operations and fuel product development even as its core US market faces disruption.
- The fresh funds will support:
- New feature development
- Software-led revenue growth
- Partnerships in sports and research
CEO Mohit Kumar affirmed that the company will continue to operate with cost discipline while accelerating product innovation and global expansion.
The US Ban: A Serious Setback
Ultrahuman’s capital raise comes during a high-stakes legal battle with Finnish wearable tech giant Oura, which has led to a ban on Ultrahuman’s smart ring imports and sales in the US.
- In October 2025, the US International Trade Commission (ITC) issued a cease-and-desist order, halting:
- Import
- Distribution
- Sales of the Ring AIR in the US
This is a significant blow, given that the US accounted for nearly 60% of Ultrahuman’s FY25 revenue.
- FY25 Operating Revenue: INR 564.7 Cr
- Net Profit: INR 71.5 Cr (vs. INR 37.7 Cr loss in FY24)
Redesign in Progress, but Uncertainty Remains
Ultrahuman is actively redesigning its smart ring for the US market, but the relaunch depends on:
- Regulatory clarity
- FCC approvals
- Avoidance of further patent infringement risks
The company is also awaiting a ruling on whether devices assembled in its Texas facility could be exempt from the import ban—a factor that could significantly impact supply restoration timelines.
What the Venture Debt Buys: Breathing Room
With US inventories expected to deplete and revenue likely to dip in FY26, the INR 100 Cr venture debt will offer Ultrahuman a cushion to:
- Continue product development
- Focus on software revenue streams
- Retain and expand strategic partnerships
This capital injection provides vital breathing room as the startup navigates a regulatory and legal bottleneck in its largest market.
Legal Update: IP Fight Continues in India
In parallel, Ultrahuman’s legal fight with Oura continues on Indian turf:
- The Delhi High Court initially dismissed Ultrahuman’s infringement case in September 2025 due to lack of disclosure around US rulings.
- The startup has since refiled the suit, and the Division Bench has reinstated the case, allowing Ultrahuman to pursue its IP protection claims in India.
This signals a continued effort to defend its technology stack, even as the global legal landscape remains complex.
What’s Next for Ultrahuman?
Despite the turbulence, Ultrahuman is doubling down on its future strategy:
- Building software-driven health features to diversify revenue
- Expanding into non-US markets
- Enhancing sports and research collaborations
- Focusing on regulatory compliance and IP hygiene to avoid future bans
While FY26 may show financial strain, the startup is positioning itself for a rebound, backed by capital, legal persistence, and a redesigned product roadmap.
