Oura buys Counsel Health for $625 million despite pausing its IPO

Oura announced on Tuesday, November 10, that it agreed to acquire AI-native primary care startup Counsel Health for $625 million in cash. The acquisition allows Oura to expand beyond smart rings into preventive, acute, and chronic medical care.

Counsel Health CEO Muthu Alagappan will join Oura as chief clinical AI officer, according to Bloomberg as cited by TechCrunch. The startup's 70 employees will also join Oura under the agreement.

Counsel Health previously raised a $25 million Series A round led by Andreessen Horowitz and GV. PitchBook estimates the startup raised a total of $36 million prior to the acquisition.

Oura funded the transaction following record financial performance, reporting 153% year-over-year revenue growth to $533 million for the quarter ended September 30. Executive Chairman David Shuman attributed the cash deal to this quarterly growth.

For its fiscal year 2026, Oura generated approximately $1.75 billion in revenue, representing 92% year-over-year growth, according to TechCrunch. The company reached an $11 billion valuation after a $900 million funding round in October 2025.

The transaction comes shortly after Oura indefinitely postponed a planned initial public offering of up to $2.2 billion due to market uncertainty. Sources report different closing timelines, with TechCrunch stating before the end of 2027, while MassDevice and Medtech Insight report completion by the end of the calendar year.

What do these terms mean?

Series A: An early stage of venture capital financing where startups secure capital after initial seed funding to commercialize their product.

Initial public offering (IPO): The process by which a private corporation offers its shares to the public on a stock exchange for the first time.