ServiceNow invests $40M in BusinessNext at a $700M valuation

In short: ServiceNow has invested $40 million in Indian banking software company BusinessNext and plans to expand a joint push into AI tools for banks.

What happened

ServiceNow, a US software company that helps large organizations automate everyday work tasks, has invested $40 million in BusinessNext. The deal values BusinessNext at $700 million, and gives ServiceNow about a 5% ownership stake.

BusinessNext is based in Noida, India, and has been around for 24 years. It said it is profitable and brought in about $32 million in revenue in its latest financial year, according to the report.

BusinessNext sells software used by banks to manage customer-facing work, like handling requests and guiding staff through steps. ServiceNow is stronger on back-office work, meaning internal processes that keep an organization running. The companies plan to sell their tools together, aiming to give banks a more complete system.

BusinessNext serves more than 70 banks across India, Southeast Asia, the Middle East, and the US. Customers named in the report include the Reserve Bank of India, State Bank of India, and HDFC Bank.

BusinessNext’s CEO Nishant Singh said about half of its revenue already comes from outside India. He said the company picked ServiceNow, rather than a traditional financial investor, to use ServiceNow’s global sales network, like borrowing an existing distribution machine.

Why it matters

Banks are under pressure to improve service while protecting sensitive customer data. BusinessNext says it uses AI agents, which are software helpers that can carry out steps on their own, and it aims to keep data on private systems to meet privacy and regulatory rules. This partnership could speed up how quickly these kinds of tools spread to more banks worldwide.

Source: TechCrunch AI