U.S. software giant ServiceNow has acquired approximately 5% of Indian company BusinessNext in a transaction that places the banking software provider’s total value at $700 million, as BusinessNext looks to grow its autonomous banking technology through the new partnership.
BusinessNext announced Wednesday that it secured $40 million in a Series C funding round from ServiceNow Ventures, the venture capital division of ServiceNow.
BusinessNext CEO Nishant Singh told Reuters that the newly raised capital will be directed primarily toward building out the company’s sales operations, with an initial focus on expanding its reach into Southeast Asia and Australia.
When asked about a potential public offering, Singh said, “Every company has to go to an IPO. Right now, we’re not looking at the IPO part,” and added that the company’s current ambition “is to run in every bank in the world.”
The investment arrives at a time when financial institutions are increasingly turning to AI-powered solutions from companies like BusinessNext to personalize customer services, handle inquiries, and automate day-to-day operations — all in an effort to save time and grow their customer base.
BusinessNext operates in a competitive space alongside companies such as Freshworks and currently serves more than 120 clients, including India’s largest lender, State Bank of India, and HDFC Bank.
As part of the partnership, BusinessNext’s AI agents will gain enhanced oversight capabilities through ServiceNow’s AI control tower — a centralized system designed to manage and govern AI models and agents across large organizations.
Singh also noted that BusinessNext has maintained annual revenue “above $50 million for a couple of years now” and that the company employs nearly 1,300 people.
Also on Wednesday, ServiceNow raised its forecast for annual subscription revenue for the second time, following stronger-than-expected second-quarter revenue and profit results, fueled by rising demand for its AI-powered software products.
