ServiceNow bets $40 million on Indian banking software specialist to expand its financial services push
ServiceNow, the US enterprise software firm best known for automating IT service and HR workflows, has invested $40 million in BusinessNext, an Indian banking software specialist, valuing the company at $700 million and giving ServiceNow a roughly 5% stake. The deal deepens ServiceNow's push into global financial services by combining BusinessNext's customer-facing banking expertise with ServiceNow's strength in workflow automation and back-office systems, with the two firms planning to sell the combined offering jointly to financial institutions. BusinessNext chose ServiceNow over financial investors specifically to gain access to its global sales network and accelerate expansion into markets where it currently has limited presence.
BusinessNext, founded in 2002 in Noida and previously known as CRMNext until 2022, is profitable and generated around $32 million in revenue last year, serving more than 70 banks across India, Southeast Asia, the Middle East and the US, including clients such as the Reserve Bank of India, State Bank of India and HDFC Bank. About half its revenue already comes from outside India. The company employs over 1,300 people, was last valued at $181 million in 2021, and has raised more than $60 million from investors including Avataar Ventures, Norwest Venture Partners and Ascent Capital. The investment comes as ServiceNow expands its financial services portfolio through acquisitions and partnerships amid growing customer scrutiny of traditional SaaS pricing against AI-native alternatives.
In short
- ServiceNow invests $40m in Indian firm BusinessNext at $700m valuation
- Deal pairs BusinessNext's banking software with ServiceNow's global sales reach
- BusinessNext serves 70+ banks, including India's central bank and top lenders
Explained simply
ServiceNow is an American software company that helps organisations automate routine work processes in areas such as IT management and human resources. The firm has invested $40 million in BusinessNext, an Indian company specialising in software for banks, acquiring roughly 5% of the business and valuing it at $700 million.
BusinessNext was founded in India in 2002 and serves more than 70 banks across Asia, the Middle East and the United States. The company is profitable, generating around $32 million in annual revenue, with major clients including the Reserve Bank of India, State Bank of India and HDFC Bank.
The partnership combines ServiceNow's strength in automating back-office work with BusinessNext's deep knowledge of banking customer needs. ServiceNow hopes to strengthen its position in financial services globally, whilst BusinessNext gains access to ServiceNow's worldwide sales network to expand into markets where it has limited presence.
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