ServiceNow invests $40M in Indian banking software firm to deepen AI push in financial services

ServiceNow, the U.S. enterprise software company known for automating workflows, has invested $40 million in BusinessNext, an Indian banking software specialist, taking a roughly 5% stake. The investment values BusinessNext at $700 million, a significant increase from its 2021 valuation of $181 million.

Founded in 2002 and formerly known as CRMNext until 2022, BusinessNext develops software that automates banking workflows using AI agents, while keeping sensitive customer data on private AI infrastructure to meet regulatory requirements. The company serves more than 70 banks across India, Southeast Asia, the Middle East, and the U.S., including the Reserve Bank of India, State Bank of India, and HDFC Bank.

About half of BusinessNext’s revenue comes from outside India, and the company plans to use ServiceNow’s global sales network for international expansion. Nishant Singh, founder and CEO of BusinessNext, said the partnership is strategic and cemented by funding. He noted that BusinessNext’s software handles customer-facing banking workflows, while ServiceNow excels in workflow automation and back-office systems—a combination the two plan to sell jointly to financial institutions.

Kulmeet Bawa, ServiceNow’s group vice president and managing director for India and SAARC, said India’s financial services sector is at an inflection point, moving from digital experimentation to full-scale AI-led operations. The partnership combines ServiceNow’s enterprise workflow platform with BusinessNext’s banking expertise.

The deal comes as traditional enterprise software vendors face pressure from customers questioning the value of legacy SaaS tools amid emerging AI-native alternatives. ServiceNow has been expanding its portfolio through acquisitions, investments, and partnerships, and this investment strengthens its position in banking. BusinessNext has raised over $60 million in external funding from investors including Avataar Ventures, Norwest Venture Partners, and Ascent Capital. It employs more than 1,300 people.