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Former Oura CEO sues company for allegedly withholding 5% equity

EntrackrEntrackr · 23d ago
Former Oura CEO sues company for allegedly withholding 5% equity
Medial

Former Oura CEO sues company for allegedly withholding 5% equity Former Oura Health CEO Harpreet Singh Rai has sued the smart ring maker in a California federal court, alleging wrongful termination and breach of contract. Rai says the company removed him to avoid granting him equity worth millions of dollars. Rai’s lawsuit comes at a time when Oura is already grappling with multiple legal battles worldwide. The company is currently embroiled in disputes with Ultrahuman in both the United States and India, and was also sued by its former promoters and early investors in July this year. According to the complaint, Rai was promised a 5% ownership stake if he raised €10 million which is about $11.55 million. He says he crossed the target but was fired without cause before receiving the full set of stock options. Rai joined Oura as president in 2017 as an independent contractor with an annual pay of $100K and around 5% equity. He became CEO in 2018 and led the company through major fundraises including a $5 million round in 2018 and a $28 million Series B round in 2019. According to Rai, his employment agreement required the company to restore his equity to 5% after the Series B with vesting over 42 months. He claims the board assured him the grant would be approved. The lawsuit states that in 2021, as his initial options were close to full vesting, board chair Eurie Kim proposed reducing his stake to 3% with any future increase linked to valuations of $5 billion and $10 billion. A few weeks after Oura launched its third generation ring in October 2021, Rai says he was removed from the company despite never resigning. Rai is also seeking equity compensation worth millions of dollars along with $225 thousand in severance. His attorney Eric Rosen from Dynamis LLP said Rai played a crucial role in Oura’s growth. In May, Oura said Ultrahuman copied its smart ring design and patents, which led to a US order blocking Ultrahuman rings from entering the country. Ultrahuman has filed its own case in Delhi, saying Oura copied its sensor technology and health features. Meanwhile, multiple high-profile promoters of Oura, including Drew Brees, Peter Attia and marketer Gordy Bal, allege that the firm promised them stock options in exchange for investment, advisory work or promotional services, but later refused to honor those agreements. They claim Oura’s CEO approved these deals, only for the company to later assert that its board never authorized the option grants, rendering them invalid. As a result, the disputes have escalated into overlapping lawsuits and arbitration cases.

Ultrahuman raises Rs 100 Cr in debt from Alteria Capital

EntrackrEntrackr · 16d ago
Ultrahuman raises Rs 100 Cr in debt from Alteria Capital
Medial

Ultrahuman raises Rs 100 Cr in debt from Alteria Capital Ultrahuman has raised Rs 100 crore ($11.2 million) in venture debt from Alteria Capital, the company said in a statement. The Bengaluru-based wearable and health-tech firm will use the capital to expand its product stack, strengthen software-led revenue, and support its sports and research partnerships. Ultrahuman has raised over $71.2 million to date, including a $35 million Series B round led by Zomato founder and CEO Deepinder Goyal alongside existing backers. Nexus Ventures holds the largest external stake at 17.26%, followed by Blume Ventures, while co-founders Mohit Kumar and Vatsal Singhal jointly own 28.9% of the company. Ultrahuman generated Rs 565 crore in operating revenue in FY25, with the US contributing close to 60% of the total. The company reported a net profit of Rs 73 crore during the fiscal, compared to a loss of Rs 38 crore in FY24, supported by scale in the US market. In a recent interaction with Entrackr, Ultrahuman founder Mohit Kumar said the firm expects to more than double its revenue to around Rs 1,100 crore in FY26, based on its current annualised run rate (ARR). The fundraise comes at a time when Ultrahuman is dealing with a legal and regulatory challenge in the United States, its largest market. In May, Oura said Ultrahuman copied its smart ring design and patents, which led to a US order blocking Ultrahuman rings from entering the country. Ultrahuman has filed its own case in Delhi, saying Oura copied its sensor technology and health features. The company is also seeking confirmation on whether devices manufactured at its Texas facility would fall outside the scope of the import ban, which could determine the pace at which supply resumes.

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