Oura to Acquire AI-Native Primary Care Startup Counsel Health for $625M

Oura announced on Tuesday that it will acquire AI-native primary care company Counsel Health for $625 million. The deal comes just weeks after Oura indefinitely postponed its up-to-$2.2 billion IPO, citing "uncertainty in the IPO market."

What Counsel Health Does

Counsel Health is an AI-powered healthcare platform that pairs a chat-based medical experience with access to licensed physicians. Its service was integrated into the Oura app in June.

Within the Oura app, users can consult Counsel's medical AI for personalized medical advice and connect with a physician when needed. The two companies now plan to expand their existing partnership across preventative care, acute care, and specialty and chronic care.

Strategic Rationale

Oura has long dominated the smart ring market, but emerging rivals such as RingConn and Ultrahuman are mounting a challenge, pressuring the company to keep innovating. Acquiring Counsel Health allows Oura to broaden its business and give users direct access to medical care.

"Oura helps members understand their physiology, and with Counsel, they can take action on their health across a range of needs—from quick questions and prescriptions to lab results, chronic care, and referrals," said Oura CEO Tom Hale in a press release.

Funding and Team

Counsel Health raised a $25 million Series A a year ago led by Andreessen Horowitz (a16z) and GV. PitchBook estimates the company had raised a total of $36 million.

Following the acquisition, Oura says Counsel will continue serving existing and new enterprise partners, with the goal of extending its AI-native care model to more people beyond Oura's membership.

Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, along with the company's 70 employees, according to Bloomberg.

"At Counsel, we've built medical AI around trust, safety, and responsibility, keeping physicians in the loop for clinical decisions," Alagappan said in the press release. "Oura's data gives clinicians objective context, trended biometrics, and member engagement to deliver more informed care. From the start, our teams bonded over a joint vision, shared culture, and mission, further solidifying as we negotiated our deal over the past few months."

The deal is expected to close before the end of 2027.

Oura's Financial Momentum

Oura also reported that revenue grew 153% year-over-year to $533 million for the quarter ended September 30. For fiscal year 2026, the company generated approximately $1.75 billion in revenue, marking 92% year-over-year growth.

Oura reached an $11 billion valuation following a $900 million late-stage funding round in October 2025.

via TechCrunch AI