Wearables market ripe for takeovers: Misfit Founder

The wearables market is ripe for further takeovers, the founder of Misfit told CNBC, in the wake of his company's $260 million takeover to an established accessories brand this month.

Speaking to CNBC on the sidelines of London's unBound startup conference, Misfit founder and director Sridhar Iyengar, said that his company's sale to Texas-based clothing and accessory firm Fossil Group is part of a larger trend sweeping the wearable technology sector.

"What you're seeing is that the audience that the new technology companies can address and garner is very different than what the traditional companies can actually get a hold of," he explained.

Misfit wearable fitness device

He pointed to the exercise app company MapMyFitness, which clinched a $150 million takeover by sports group Under Armour back in 2013.

But it's Fitbit's successful flotation that's had the biggest impact on the wearables market, with shares soaring in the wake of its New York Stock Exchange debut in June. The company is now worth around $4.1 billion.

"What they've done for the industry has been really good for us. They've actually legitimized the fitness tracker market and because of that all of us have benefitted," Iyengar said.

Now, though, Iyengar is exploring the business-to-business applications for wearables, particularly between health care, insurers and pharmaceutical companies. Drug companies can help monitor how their therapies are working, while insurance firms or healthcare providers can actually monitor the efficacy of new medicines.

"Healthcare is huge area that is relatively unknown and untouched by these big brands, and that's something that big pharma knows but they can't innovate fast enough, and the big consumer brands kind of look at this space and they say, how do we get into it?" Iyengar said.

"Small companies can bridge those two gaps."

Correction: This story has been updated to correct the spelling of Sridhar Iyengar's name.