ServiceNow has invested $40 million in BusinessNext, valuing the Indian banking software specialist at $700 million and securing roughly 5% of the company.

The deal gives BusinessNext access to ServiceNow's global sales network as the companies deepen their partnership in AI-powered financial services. The 24-year-old Noida-based firm generated about $32 million in revenue in its latest financial year and serves more than 70 banks across India, Southeast Asia, the Middle East, and the US.

BusinessNext's customers include the Reserve Bank of India, State Bank of India, and HDFC Bank. About half of its revenue comes from outside India, with overseas markets expected to drive future growth.

Strategic partnership over pure funding

Founder and CEO Nishant Singh said BusinessNext chose ServiceNow over financial investors to accelerate expansion by tapping the US software company's global reach. The partnership allows BusinessNext to "borrow" ServiceNow's sales infrastructure in markets where it has limited presence.

"Think of it as a strategic partnership, which is cemented with funding," Singh told TechCrunch. BusinessNext manages customer-facing banking workflows while ServiceNow handles back-office systems - a combination both companies plan to sell jointly to financial institutions.

BusinessNext, formerly CRMNext until 2022, has built what Singh calls an "autonomous banking" platform using AI agents to automate banking workflows. The company keeps sensitive customer data on private AI infrastructure to meet regulatory requirements.

"We actually renamed our company and we kind of rewrote our stack to put that fundamentally at the core," Singh said of the AI integration.

The company employs more than 1,300 people and was last valued at $181 million in 2021. It has raised more than $60 million in external funding from investors including Avataar Ventures, Norwest Venture Partners, and Ascent Capital.

The investment comes as enterprise software vendors face pressure from customers questioning traditional SaaS tools when AI-native alternatives emerge. For ServiceNow, the deal expands its banking position through partnership with an AI-focused banking software company.