Wearable technology is undergoing a dramatic transformation. Once dominated by wrist-worn fitness trackers and smartwatches, the sector is experiencing a rebirth driven by a new generation of innovative, solution-oriented devices. From AI-powered pendants that record conversations to anxiety-reducing neural stimulators and payment-enabled rings, these next-gen wearables are reshaping what consumers expect from personal tech—and where they wear it.
From Functional to Transformational: The Shift in Wearables
The early wave of wearable devices focused primarily on passive health data collection—tracking steps, sleep patterns, heart rate, and more. These metrics were valuable, but over time, many consumers began to question their utility. Despite a post-COVID boom, India’s wearables market—once fueled by ultra-low-cost smartwatches—saw its first-ever shipment decline in 2024, according to an IDC report. Shipments dropped 11.3% to 119 million units, with smartwatches, which comprise 35–40% of the market, plummeting 34%.
“Wearables are now nebulous as a category. They don’t really exist anymore in the traditional sense,” explains Ankur Bisen, Senior Partner and Head of Consumer, Food and Retail at Technopak Advisors. “Today, it’s simply a functionality packaged into smart electronics. Tomorrow, it may take the form of a chip embedded somewhere.”
This evolution has set the stage for a new era—one that moves beyond counting steps and measuring sleep to actively intervening in users’ lives and wellbeing.
Wearables That Do More Than Monitor
Leading the charge in this wearable renaissance are devices with clearly defined, impactful functions. These are not just tools for self-quantification—they’re designed to solve real-world problems.
Take InnerGize, a mental health-tech startup that gained recognition on Shark Tank India. Its flagship product stimulates the vagus nerve using gentle electrical signals to help reduce anxiety. The startup recently raised ₹6.5 crore from investors including Antler, Ritesh Agarwal, Arjun Vaidya, and various government bodies. “Solution-based wearables are what the world genuinely needs,” says Siddhant Bhargava, Co-founder and CEO of InnerGize. “Today’s wearables must positively impact the wearer’s health, not just monitor it.”
Another example is NeoSapien, an AI-powered locket brand that acts like a real-time notetaker. It records, transcribes, and helps users revisit conversations for better productivity and memory retention. The startup raised ₹80 lakh on Shark Tank India, showing early promise in the niche of memory-assisting wearables.
Then there’s 7 Ring, a sleek, contactless payment ring linked to a digital prepaid wallet. With a simple tap, users can pay for groceries, coffee, or transport—no phone or wallet required. The brand has raised ₹2.24 crore and is carving out a space in the booming fintech-meets-fashion segment.
A Slowdown Sparks Specialisation
The broader market slowdown has actually spurred creativity. As mainstream categories like smartwatches face stagnation, newer entrants are targeting deeper, specialized use-cases—and commanding higher prices in the process.
Varun Gupta, Co-founder of Boult, reflects on the transformation: “The smartwatch market in India is at a tipping point. People initially bought them for style or fitness, but many didn’t end up using them as expected. Now, buying decisions have moved from impulse to utility.”
This growing utility-first mindset among consumers is also redefining wearable innovation. It’s no longer enough for a device to track something. It must improve something—be it health, productivity, or convenience.
Investment Momentum Signals Market Confidence
Despite the broader decline in wearables shipments, investors remain bullish on startups offering differentiated value propositions.
Ultrahuman, a Nexus Ventures-backed startup known for its sleep-tracking AIR Ring, is reportedly close to raising $120 million from Westbridge Capital and other investors. The ring, priced upwards of ₹28,499 with an additional ₹2,988 yearly subscription, signals a shift toward premiumization.
InnerGize’s first-gen vagus nerve stimulator retails at ₹12,400, while 7 Ring is offered at ₹7,000.
NeoSapien’s AI locket starts at ₹9,999—a bold pricing move in a market once obsessed with sub-₹2,999 devices.
“Brand value and R&D matter far more than price in the premium segment,” says Dhananjay Yadav, Co-founder and CEO of NeoSapien. “Players like Ultrahuman have increased prices to ₹28,000 and still managed to maintain their position as market leaders. Indian consumers are increasingly willing to pay for original products with superior capabilities.”
The Pricing Paradox: Innovation vs. Affordability
Yet, the industry faces a critical challenge—India’s deeply rooted price sensitivity. As Paras Batra, Founder of Leaf Studios, puts it: “Once you’ve bought a smartwatch for ₹1,100 or ₹999, it’s tough to convince consumers to spend ₹7,000 or more.”
This value disconnect is a legacy of the race-to-the-bottom pricing strategy adopted during the pandemic boom. “Smartwatches were sold at ultra-low margins just to gain market share,” explains Batra. “But that didn’t translate into sustainable profits.”
Many wearable companies also rely heavily on Chinese white-label manufacturers, making them vulnerable to cost shifts and margin pressures. Competing on price, especially in a commoditized market, often leaves little room for R&D, innovation, or long-term brand development.
Bhargava of InnerGize echoes the concern: “The fear of being undercut by a competitor keeps many companies operating on razor-thin margins. This ultimately affects the feasibility of the business.”
Looking Ahead: The Rebirth of Wearables
The wearables category is no longer about how many steps you took. It’s about how your wearable helps you live better—whether by reducing stress, simplifying payments, or organizing your life.
“Wearables are growing up,” says Gupta. “We’re witnessing the emergence of a new generation of devices that solve real problems instead of just tracking metrics.”
With AI integration, healthtech breakthroughs, and premium branding, the next wave of wearables promises not just a new look—but a new purpose. While challenges like pricing and mass-market appeal remain, the segment’s evolution is well underway.
In this new world, wearables are no longer confined to the wrist. They’re wherever they can make the most meaningful difference.
