ServiceNow acquires 5% stake in Indian banking software firm BusinessNext for $40 million

U.S. enterprise software company ServiceNow has invested $40 million in Indian banking software specialist BusinessNext, acquiring a roughly 5% stake in the firm. The transaction values BusinessNext at $700 million, marking a significant increase from its previous valuation of $181 million in 2021. The strategic partnership aims to expand ServiceNow’s financial services capabilities by combining its global sales network and workflow automation platform with BusinessNext’s AI-powered banking software.

BusinessNext, a 24-year-old, Noida-based company, generated approximately $32 million in revenue in its latest financial year. The firm serves more than 70 banks across India, Southeast Asia, the Middle East, and the United States, including the Reserve Bank of India, State Bank of India, and HDFC Bank. Approximately half of BusinessNext’s revenue is derived from outside India, with overseas markets expected to drive future growth.

The company chose ServiceNow over potential financial investors to accelerate its expansion by leveraging ServiceNow’s global sales infrastructure and go-to-market machinery. BusinessNext founder and CEO Nishant Singh stated that the partnership would help the firm “borrow” ServiceNow’s sales infrastructure in markets where it currently has a limited presence. Singh described the arrangement as a strategic partnership cemented with funding, designed to jointly sell combined solutions to financial institutions.

BusinessNext has built an “autonomous banking” platform using AI agents to automate workflows while keeping sensitive customer data on private AI infrastructure. The company, formerly known as CRMNext until 2022, employs more than 1,300 people and has raised more than $60 million in external funding from investors including Avataar Ventures, Norwest Venture Partners, and Ascent Capital. Singh noted that AI was built into the company’s platform from the outset, with the firm rewriting its technology stack to put artificial intelligence at the core.

Kulmeet Bawa, ServiceNow’s group vice president and managing director for India and SAARC, stated that India’s financial services sector is moving from digital experimentation to full-scale AI-led operations. The deal reflects a broader trend of established enterprise software vendors strengthening their positions in specific sectors like banking through strategic investments and partnerships, as they face pressure from customers questioning the value of traditional SaaS tools amid the emergence of AI-native alternatives.