Business

ServiceNow Invests $40M in BusinessNext, Targets AI in Banking

ServiceNow is investing $40 million in India's BusinessNext for a 5% stake, valuing the banking software maker at $700 million and opening a joint AI push.

ServiceNow is paying $40 million for a 5% stake in BusinessNext, the profitable Indian banking software maker formerly known as CRMNext, valuing the company at $700 million. BusinessNext serves more than 70 banks including the Reserve Bank of India, State Bank of India, and HDFC Bank, and has built an AI-native platform around customer-facing banking workflows. The two companies will sell their combined workflow and back-office automation to financial institutions jointly. The deal lands as enterprise SaaS vendors face renewed scrutiny over pricing, and signals ServiceNow's preferred path into banking: partnerships and minority investments rather than a single large acquisition.

The deal, in numbers

ServiceNow is paying 40millionforaroughly540 million for a roughly 5% stake in BusinessNext**, the Noida-based banking software company formerly known as CRMNext. The investment values BusinessNext at **700 million and gives the 24-year-old Indian firm access to ServiceNow's global sales network as the two companies expand a partnership built around AI for financial services.

What BusinessNext actually does

BusinessNext is not a startup. It was founded in 2002, employs more than 1,300 people, and is profitable. In its latest financial year, it generated about $32 million in revenue, with roughly half of that coming from outside India. The company serves more than 70 banks across India, Southeast Asia, the Middle East, and the United States. Its customers include the Reserve Bank of India, State Bank of India, and HDFC Bank, which between them cover most of the country's banking system.

Founder and CEO Nishant Singh told TechCrunch that overseas markets are expected to drive most of the company's future growth, which is the main reason BusinessNext took ServiceNow's money instead of capital from a financial investor. The company had already raised more than $60 million from backers including Avataar Ventures, Norwest Venture Partners, and Ascent Capital.

Why the partnership is more than the dollar amount

The product fit is the part that matters strategically. BusinessNext's software manages customer-facing banking workflows like onboarding, service requests, and loan origination. ServiceNow is strong in workflow automation and back-office systems, including IT service management, HR operations, and cross-departmental process orchestration. The two are complementary rather than overlapping, which is why the plan is to sell the combination jointly to financial institutions rather than integrate the products at the platform level.

Kulmeet Bawa, ServiceNow's group vice president and managing director for India and SAARC, framed the move in line with where he sees the Indian market heading: "India's financial services sector is at an inflection point. Institutions are moving from digital experimentation to full-scale AI-led operations."

Singh's view is that the platform was AI-native by design rather than retrofitted. BusinessNext renamed itself from CRMNext in 2022 and rebuilt its stack around an "autonomous banking" model that uses AI agents to automate banking workflows while keeping sensitive customer data on private AI infrastructure to meet regulatory and privacy requirements.

The broader context: SaaS under pressure

The deal also lands in a market where established enterprise software vendors are increasingly being asked whether their tools are worth paying for at all, given the rise of AI-native alternatives. For ServiceNow, the investment is one of several moves to expand its footprint in financial services through acquisitions, investments, and partnerships rather than a single big acquisition. For BusinessNext, the deal is a way to "borrow" ServiceNow's go-to-market machinery, in Singh's words, in markets where it has limited presence today.

The unanswered question is how the joint pitch lands with banks that are already ServiceNow customers. If BusinessNext's banking workflows slot cleanly into ServiceNow's existing enterprise automation footprint, the partnership is a multiplier. If banks see it as two vendors trying to look like one, the integration story will need more work.