ServiceNow, a major U.S. enterprise software company, has invested $40 million in BusinessNext. BusinessNext is an Indian software company specializing in banking solutions. This move is part of ServiceNow’s plan to grow its presence in financial services.
BusinessNext was valued at $700 million after this investment. ServiceNow took roughly a 5% stake in the company. BusinessNext earned about $32 million in revenue in its latest financial year. Its client list includes more than 70 banks across India, Southeast Asia, the Middle East, and the U.S.
Big names like the Reserve Bank of India, State Bank of India, and HDFC Bank use BusinessNext’s software. Around half of the company’s revenue comes from outside India. That shows its growing international reach. BusinessNext was valued at $181 million in 2021, so it has more than tripled in value in just a few years.
From CRMNext to BusinessNext
Founded in 2002, BusinessNext was known as CRMNext until 2022. The company rewrote its software stack to focus on AI and banking technology. Nishant Singh, a leader at BusinessNext, said, “We actually renamed our company and we kind of rewrote our stack to put that fundamentally at the core.”
He called the partnership with ServiceNow “strategic” and said the funding cements that relationship. BusinessNext now employs more than 1,300 people. It has raised over $60 million in external funding from investors such as Avataar Ventures, Norwest Venture Partners, and Ascent Capital.
AI and Safety at the Forefront
ServiceNow’s CEO Bill McDermott described India’s financial sector as being “at an inflection point.” He explained that institutions are moving from digital experiments to full-scale AI operations. McDermott emphasized ServiceNow’s focus on AI safety, stating, “We have a kill switch if AI agents go rogue.”
Kulmeet Bawa, ServiceNow’s group vice president and managing director for India and SAARC, noted the shift toward AI-led financial services. He said, “India’s financial services sector is at an inflection point — institutions are moving from digital experimentation to full-scale AI-led operations.”
The partnership aims to expand the use of AI in financial services globally. ServiceNow wants to bring its AI automation tools to BusinessNext’s banking customers. This can improve efficiency and security in banking software, a sector that handles sensitive data and complex transactions.
BusinessNext’s growth reflects a broader trend. Many banks still rely on mainframe systems but want modern AI-driven tools. IBM’s Arvind Krishna recently said, “We see no evidence of clients moving off the mainframe.” This means new AI solutions must work alongside old systems.
ServiceNow’s investment signals confidence in BusinessNext’s ability to lead this change. The company’s valuation jump and strong customer base show it can meet banks’ evolving needs. For ServiceNow, this opens doors to a fast-growing market where AI safety and reliability matter most.
Based on
- ServiceNow bets $40 million on Indian banking software specialist to expand its financial services push — techcrunch.com
- ServiceNow CEO: We have a kill switch if AI agents go rogue — cnbc.com
- ServiceNow Tries to Counter AI Threat Narrative With Strong Growth – Business Insider — businessinsider.com
- OpenAI is launching new corporate software that takes it beyond the AI model war | Business Insider Africa — africa.businessinsider.com
- After shocking quarter, IBM insists that AI isn’t killing the mainframe | TechCrunch — techcrunch.com
