Cape Town med-tech company AI Diagnostics raises $5.2 million to scale TB screening through lung sound analysis

The funding will support clinical research across more than 10 countries and the operational infrastructure needed to deploy its digital stethoscope in communities without X-ray access

AI Diagnostics, a Cape Town-based medical technology company founded in 2020, has raised ZAR 85 million (US$5.2 million) to expand the use of its TB screening platform, a digital stethoscope paired with an AI model that analyses lung sounds at the point of care to identify individuals who may have tuberculosis.

The device, called Ostium, is designed for use by nurses and community health workers in settings where X-ray equipment and specialist clinicians are not available. The AI model processes lung sound recordings in real time and flags patterns associated with TB, allowing the healthcare worker to refer the patient for confirmatory diagnostic testing immediately rather than waiting for access to imaging or laboratory infrastructure.

The round was led by The Steele Foundation for Hope, a foundation that invests in early-stage companies addressing health and development challenges, with participation from iFSP Group and Global Innovation Fund, and follow-on investment from early angel backers. Previous rounds included Africa Health Ventures and Savant.

AI Diagnostics currently holds approval from the South African Health Products Regulatory Authority (SAHPRA) and has screened more than 1,000 patients in South Africa. The company is conducting clinical research across more than 10 countries in Africa and Asia. The new funding is intended to support that clinical validation work, continued development of both the hardware and the AI model, and the operational infrastructure required to scale production and distribution.

"We back technical entrepreneurs who are closest to the problems they're solving, and AI Diagnostics is a clear example of why that matters," said Joe Exner, CEO of The Steele Foundation for Hope. "They've built novel hardware: an AI-enabled digital stethoscope that detects TB through lung sound analysis with point-of-care accuracy that simply wasn't possible before. In communities without X-ray infrastructure or specialist clinicians, this puts real diagnostic capability in the hands of nurses and community health workers."

"The AI model flags individuals whose lung sounds have signals associated with TB in real time so healthcare providers can refer them for diagnostic testing immediately," said Braden van Breda, CEO of AI Diagnostics. "For health systems trying to close the detection gap, this changes the availability and the geography of screening."