ServiceNow buys 5% of AI banking firm BusinessNext for $40M at $700M valuation

ServiceNow just planted a flag in AI-driven banking software, taking a $40 million stake in India’s BusinessNext at a $700 million valuation. The deal gives the workflow automation giant roughly a 5% share in a company most people outside of banking circles have never heard of — but whose client list tells you exactly why ServiceNow wrote the check.

The Noida-based firm, which rebranded from CRMNext in 2022 and rebuilt its entire stack around AI agents, already counts the Reserve Bank of India, State Bank of India, and HDFC Bank as customers. It pulled in about $32 million in revenue last year serving more than 70 banks across India, Southeast Asia, the Middle East, and the U.S. About half that revenue already comes from outside India, and CEO Nishant Singh told TechCrunch he expects overseas markets to drive growth going forward.

What’s really happening here is a distribution play dressed up as a strategic investment. Singh said the partnership lets BusinessNext “borrow” ServiceNow’s go-to-market machinery in regions where it has no real sales footprint. In return, ServiceNow gets a front-row seat to banking’s AI overhaul — combining its back-office workflow cred with BusinessNext’s customer-facing banking tools. “Think of it as a strategic partnership, which is cemented with funding,” Singh said. That’s a refreshingly honest framing for a deal that could’ve been spun as pure visionary synergy.

The timing matters. Enterprise SaaS vendors are under real pressure as customers question whether they should keep paying for traditional tools when AI-native alternatives exist. ServiceNow’s play here isn’t to build banking AI from scratch — it’s to buy a stake in a company that already did the hard work, then pipe it through a global sales channel. Last valued at $181 million in 2021, BusinessNext’s near-4x valuation jump suggests the AI pivot — and the ServiceNow halo — are doing exactly what they’re supposed to do.