ServiceNow takes 5% stake in India’s BusinessNext
The $40 million investment values BusinessNext at $700 million and gives ServiceNow a wider path into AI software for banks.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
ServiceNow has invested $40 million in BusinessNext, an Indian banking software company, in a deal that values the firm at $700 million, TechCrunch reported. For investors watching enterprise software, the move shows how ServiceNow is trying to grow beyond its core workflow tools and capture more spending from banks adopting artificial intelligence.
The investment gives ServiceNow a stake of about 5% in BusinessNext, according to TechCrunch. It also turns the partnership into more than a reseller arrangement: BusinessNext gets access to ServiceNow’s global sales network, while ServiceNow adds a specialist in customer-facing banking software to its financial services push.
ServiceNow is best known for workflow automation, software that helps companies route and complete tasks such as IT requests, HR cases and back-office processes. BusinessNext focuses on banking workflows closer to the customer, including software used by financial institutions to manage client relationships and service processes.
BusinessNext founder and CEO Nishant Singh told TechCrunch that the companies plan to sell their products together to financial institutions. He described the funding as a way to lock in a strategic partnership, rather than a standard venture capital deal.
Why ServiceNow is looking at banking AI
Banks are a high-value market for enterprise software companies because they run complex operations, face heavy regulation and spend heavily on technology. AI agents, meaning software systems that can carry out tasks with limited human input, are becoming a larger part of that sales pitch.
BusinessNext, based in Noida, India, has built what Singh calls an “autonomous banking” platform, according to TechCrunch. The company uses AI agents to automate banking tasks while keeping sensitive customer information on private AI infrastructure, a setup designed to address privacy and regulatory demands.
Singh told TechCrunch that AI was part of the company’s platform strategy early, and that BusinessNext rewrote its technology stack when it rebranded from CRMNext in 2022.
Kulmeet Bawa, ServiceNow’s group vice president and managing director for India and SAARC, said India’s financial services industry is shifting from testing digital tools to broader AI-led operations. He said the partnership combines ServiceNow’s workflow platform with BusinessNext’s banking expertise.
BusinessNext’s footprint
BusinessNext was founded in 2002 and now serves more than 70 banks across India, Southeast Asia, the Middle East and the U.S., according to TechCrunch. Its customers include the Reserve Bank of India, State Bank of India and HDFC Bank.
The company is profitable and generated about $32 million in revenue in its latest financial year, TechCrunch reported. Singh said about half of revenue comes from outside India, and he expects international markets to account for much of the company’s future growth.
BusinessNext has more than 1,300 employees and has raised more than $60 million in outside funding, according to TechCrunch. Its existing investors include Avataar Ventures, Norwest Venture Partners and Ascent Capital. Private market intelligence platform Tracxn valued the company at $181 million in 2021.
For ServiceNow, the deal fits a broader enterprise software trend: large vendors are using investments, acquisitions and partnerships to add AI capabilities faster, while customers compare traditional software subscriptions with newer AI-native tools. The BusinessNext stake gives ServiceNow a banking-focused partner as that contest moves deeper into financial services.
This story draws on original reporting from TechCrunch.
