Abby Care raises $82 million to pay family members as trained home caregivers

Abby Care, a San Francisco start-up that trains family members to work as certified, paid caregivers for their own relatives, has raised $82 million in a Series C funding round, it was reported on Thursday, October 15, 2026. Transformation Capital led the round. CVS Health Ventures, Frist Cressey Ventures and Pivotal Ventures joined as new investors, and existing backers Khosla Ventures, Thrive Capital and Sequoia also took part. The company, founded in 2022 by chief executive Havi Nguyen, works with Medicaid programmes and health plans to coordinate care at home.

Abby Care is betting on a simple idea with a large market behind it. In many homes, a parent, spouse or adult child already looks after a relative who is elderly, disabled or medically fragile, usually without pay and often at the cost of a job. At the same time, health systems struggle to find enough trained home-care workers. Abby Care's model joins the two: it trains the family member, certifies them, and arranges for public insurance and health plans to pay them for the care they give.

The investor list shows why the bet is being taken seriously. CVS Health, through its venture arm, is one of the biggest names in US health care, and its arrival alongside Sequoia, Thrive and Khosla signals that both health-care insiders and generalist technology investors see room to grow. A general partner at CVS Health Ventures pointed to the size of the gap, saying a traditional private duty nurse programme fills only 65% of the shifts it is authorised to provide.

There are risks. The company depends on Medicaid, the US public health programme for people on low incomes, and Medicaid rules are set state by state. That makes growth tied to policy decisions in each state, a risk that start-ups selling directly to paying customers do not carry. The company has also not shared any revenue or scale figures, so the $82 million is the only hard number available.

For investors and founders in India, the model is worth watching. India's care for the elderly and the ill rests heavily on families, and paid home-care services are still a young industry. A version of this approach would depend on insurers or government schemes being willing to pay family carers, which is the part that makes the US model work.

Short-term: The new money gives Abby Care room to expand into more states and sign more health plans, and to train more family caregivers.

Long-term: If the model spreads, more unpaid family carers could be brought into the paid, trained workforce, easing shortages in home care while keeping patients at home rather than in institutions.

Who is affected: Family members who care for relatives, patients who need care at home, US state Medicaid programmes and health plans, and investors in home-care and health technology.

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