ServiceNow Invests $40M in Indian Banking Software Firm BusinessNext at $700M Valuation
ServiceNow has placed a $40 million bet on Indian banking software specialist BusinessNext, valuing the 24-year-old firm at $700 million. The deal includes a strategic partnership to jointly market AI-powered solutions for financial institutions.
ServiceNow, the U.S. enterprise software company, has made a strategic investment in BusinessNext, an Indian banking software specialist, to strengthen its presence in global financial services. The $40 million investment gives ServiceNow an approximately 5% stake in BusinessNext, which is now valued at $700 million.
Founded in 2002 and known as CRMNext until 2022, BusinessNext focuses on automating banking workflows using AI agents. Its platform is built to keep sensitive customer data on private AI infrastructure to comply with regulatory and privacy requirements. According to founder and CEO Nishant Singh, AI was embedded in the platform from the start, not added later.
The Noida-based company serves more than 70 banks across India, Southeast Asia, the Middle East, and the United States. Its clients include the Reserve Bank of India, as well as India’s largest public and private sector lenders. About half of BusinessNext’s revenue comes from outside India, and overseas markets are expected to drive future growth.
Singh told TechCrunch that the company chose to partner with ServiceNow rather than seek financial investors in order to leverage ServiceNow’s global sales network. “Think of it as a strategic partnership, which is cemented with funding,” he said.
Kulmeet Bawa, ServiceNow’s group vice president for India and SAARC, noted that India’s financial services sector is at an inflection point, moving from digital experimentation to full-scale AI-led operations. He added that the partnership combines ServiceNow’s enterprise workflow platform with BusinessNext’s banking expertise.
BusinessNext employs more than 1,300 people and was last valued at $181 million in 2021. It has raised over $60 million in external funding from investors including Avataar Ventures, Norwest Venture Partners, and Ascent Capital.
The deal comes as traditional SaaS vendors face pressure from customers questioning their value against AI-native alternatives. For ServiceNow, the investment builds out its position in banking through a partnership focused on AI-driven banking software.
