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ServiceNow, the U.S. enterprise software company known for automating workflows like IT service management and HR operations, is betting on an Indian banking software specialist to deepen its push into global financial services.<\/p>\n
The company has invested $40 million in BusinessNext<\/a>, valuing the 24-year-old Indian firm at $700 million and taking a roughly 5% stake. The deal gives BusinessNext access to ServiceNow\u2019s global sales network as the companies expand their partnership in AI for financial services.<\/p>\n ServiceNow\u2019s investment reflects BusinessNext\u2019s growing profile beyond India. The profitable, Noida-based company, which generated about $32 million in revenue in its latest financial year, serves more than 70 banks across India, Southeast Asia, the Middle East, and the U.S. Its customers include the Reserve Bank of India, the country\u2019s central bank, and State Bank of India and HDFC Bank, which are India\u2019s largest public- and private-sector lenders, respectively.<\/p>\n About half of BusinessNext\u2019s revenue comes from outside India, with overseas markets expected to drive much of its future growth, founder and CEO Nishant Singh said in an interview.<\/p>\n The company chose ServiceNow over potential financial investors to accelerate its expansion by tapping the U.S. software group\u2019s global reach. Singh told TechCrunch that the partnership would help BusinessNext \u201cborrow\u201d its go-to-marker \u201cmachinery\u201d \u2014 referring to ServiceNow\u2019s sales infrastructure \u2014 in markets where it has a limited presence.<\/p>\n \u201cThink of it as a strategic partnership, which is cemented with funding,\u201d he said.<\/p>\n BusinessNext\u2019s software, Singh said, manages customer-facing banking workflows, while ServiceNow is stronger in workflow automation and back-office systems, a combination the two companies plan to sell jointly to financial institutions.<\/p>\n \u201cIndia\u2019s financial services sector is at an inflection point \u2014 institutions are moving from digital experimentation to full-scale AI-led operations,\u201d Kulmeet Bawa, ServiceNow\u2019s group vice president and managing director for India and SAARC, said. He added that the partnership combines ServiceNow\u2019s enterprise workflow platform with BusinessNext\u2019s banking expertise.<\/p>\n Founded in 2002, BusinessNext \u2014 known as CRMNext until 2022 \u2014 has spent several years building what Singh calls an \u201cautonomous banking\u201d platform, using AI agents to automate banking workflows while keeping sensitive customer data on private AI infrastructure to meet regulatory and privacy requirements.<\/p>\n Singh told TechCrunch that AI was built into the company\u2019s platform from the outset rather than added later. \u201cWe actually renamed our company and we kind of rewrote our stack to put that fundamentally at the core,\u201d he said.<\/p>\n BusinessNext employs more than 1,300 people across its operations and was last valued at $181 million<\/a> in 2021, per private market intelligence platform Tracxn. It has raised more than $60 million in external funding and counts Avataar Ventures, Norwest Venture Partners, and Ascent Capital among its existing investors.<\/p>\n The deal comes as established enterprise software vendors face pressure from customers who are questioning whether traditional SaaS tools are worth paying for when AI-native alternatives are emerging. For ServiceNow, the deal builds out its position in banking by partnering with a company focused on AI-driven banking software, as it expands its enterprise software portfolio through acquisitions, investments, and partnerships.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n