AI Healthtech Startup August AI in Talks to Raise $4 Million

AI health companion startup August AI is in negotiations to raise around $4 million from Peak XV Partners, sources familiar with the matter told Inc42. The specific terms of the potential deal, including valuation and other investors' involvement, are still under discussion and could be subject to change.

Neither August AI founder Anuruddh Mishra nor Peak XV have responded to requests for comment. Existing investor Accel declined to comment. This development follows a seed funding round of $3 million approximately 10 months ago, led by Accel and Claypond Capital.

Founded in 2022, August AI offers an AI-powered health companion that assists users in understanding symptoms, prescriptions, and medical reports. The platform supports queries in over 30 languages and aims to supplement, not replace, professional medical consultations. It utilizes Microsoft's Azure OpenAI infrastructure for processing health queries.

At the time of its previous funding round in October 2025, August AI claimed to have over 3.5 million active users, including more than 100,000 doctors. The company's AI approach is part of a broader trend in healthtech, where startups are leveraging artificial intelligence for various healthcare applications.

The potential funding for August AI reflects a growing investor appetite for healthtech companies utilizing AI to enhance healthcare access, aid in early diagnosis, and improve the efficiency of clinical workflows.