Kryo, the company behind the ChiliSleep brand, is announcing that it has merged with another sleep technology company, Ebb Therapeutics, and also raised $37 million in new funding led by Ebb’s biggest investor, KKR.
Founded in 2007, Kryo/ChiliSleep’s products include the chiliPAD, a device designed to improve sleep by adjusting the temperature of your bed. Co-founder and CEO Tara Youngblood told me the company has always been focused on “changing sleep through temperature regulation” — but recently, the team has also become “hungry for this software piece” that will allow them to reach consumers without hardware.
Ebb, meanwhile, has created a cooling headband that’s also supposed to help customers sleep better. Youngblood said that the two companies have “a complementary approach,” and that the merger will create a strong portfolio of combined patents.
Youngblood also said that moving forward, the company will be led by Kryo management, but she declined to comment further on whether the Ebb team will be part of the merger.
The plan is to launch a new software platform called Sleep.me in May, which will combine sleep-related community, content and coaching (that last piece will draw on Ebb’s existing coaching service), with free and paid offerings. Youngblood said the company will continue to sell ChiliSleep products as well. A Kyro spokesperson later said that the fate of the Ebb brand is not yet decided.
Youngblood acknowledged that there’s been an explosion in sleep-related products in recent years — something she attributed to growing research and awareness around the importance of sleep to our health.
“What’s going to be different, really, with the platform is that we’re going to talk to that individual” and offer personalized advice, she said. “Thermal regulation may be a part of [your personalized approach], or it may not.”
“Insomnia and sleep-related issues are unfortunately on the rise, but fortunately so are effective treatments to address them,” said Ali Satvat, the global head of KKR Health Care Strategic Growth, in a statement. “We are thrilled to support the merger of ChiliSleep and Ebb to bring these innovations to the market and help solve an unmet need for those who need improved sleep.”