South Africa’s AI Diagnostics raises USD4.6M to scale AI-powered TB screening

SOUTH AFRICA—AI Diagnostics, a South African medtech company, has raised R85 million (US4.6 million) in a pre-Series A funding round to expand access to tuberculosis (TB) screening.

The investment will support the rollout of its AI-powered Ostium digital stethoscope, designed to detect TB early without requiring complex infrastructure or specialist expertise.

The Steele Foundation for Hope led the round, with participation from the iFSP Group and the Global Innovation Fund, alongside follow-on funding from early angel investors. Previous backers include Africa Health Ventures and Savant.

The company will use the funding to advance clinical validation, refine its AI models, and strengthen the operational capacity needed to scale across South Africa and other emerging markets in sub-Saharan Africa and Asia.

Addressing gaps in TB detection

South Africa remains one of the world’s highest TB-burden countries.

According to the WHO’s 2025 World TB Report, about 249,000 people developed TB in 2024, while an estimated 54,000 died from the disease.

Several systemic challenges continue to hinder effective control.

First, detection rates remain low, as many cases go unnoticed until advanced stages.

A national TB prevalence survey found that 58% of individuals who tested positive reported no symptoms, limiting the effectiveness of symptom-based screening.

In addition, healthcare facilities in high-burden areas often face staff shortages and lack adequate diagnostic tools, resulting in long wait times and delayed diagnoses.

The situation becomes more complex due to the HIV-TB co-epidemic, with more than half of TB cases in parts of southern Africa occurring in people living with HIV.

Technology designed for frontline care

AI Diagnostics developed its Ostium digital stethoscope and AI.TB software to support frontline healthcare providers, including nurses, pharmacists, and community health workers.

These tools analyze lung sounds in real time and flag patterns associated with TB, enabling immediate referrals for confirmatory testing.

The company has received approval from the South African Health Products Regulatory Authority (SAHPRA) and has already screened more than 1,000 patients locally.

It is also conducting clinical research in over 10 countries across Africa and Asia to validate and expand its use.

Investor confidence in scalable innovation

Investors say the technology addresses both healthcare access and innovation gaps.

Joe Exner, CEO of the Steele Foundation for Hope, emphasized that the solution brings diagnostic capability closer to underserved communities by equipping frontline workers with practical tools.

Jan van Staden of iFSP Venture Capital noted that the investment aligns with a broader focus on technologies that combine social impact with sustainable returns.

Similarly, the Global Innovation Fund highlighted South Africa’s growing role in global health innovation, noting that solutions developed in resource-constrained settings often translate well to other markets.

Beyond TB, AI Diagnostics is exploring applications of its platform for detecting other lung and heart conditions, reflecting growing interest in point-of-care diagnostics powered by artificial intelligence.