ServiceNow is deepening its financial services footprint with a $40 million strategic investment in BusinessNext, an Indian banking software specialist. The deal values the 24-year-old company at $700 million and gives ServiceNow a roughly 5% stake, while providing BusinessNext access to the U.S. enterprise software giant's global sales network. Main Developments BusinessNext, headquartered in Noida, India, serves over 70 banks across India, Southeast Asia, the Middle East, and the United States. Its clients include the Reserve Bank of India, State Bank of India, and HDFC Bank. The profitable company generated roughly $32 million in revenue in its latest financial year, with about half coming from outside India. Founder and CEO Nishant Singh said the company chose ServiceNow over potential financial investors to accelerate expansion. The partnership will allow BusinessNext to leverage ServiceNow's go-to-market infrastructure in regions where it has limited presence. "Think of it as a strategic partnership, which is cemented with funding," Singh told TechCrunch. Read also: IBM Mainframe Sales Plunge 42% as AI Boom Redirects Data Center Budgets BusinessNext's software manages customer-facing banking workflows, while ServiceNow specializes in workflow automation and back-office systems. The two companies plan to jointly sell their combined offerings to financial institutions. ServiceNow's group vice president for India and SAARC, Kulmeet Bawa, noted that India's financial sector is moving from digital experimentation to full-scale AI-led operations. Background Founded in 2002 as CRMNext, the company rebranded to BusinessNext in 2022 to reflect its shift toward an autonomous banking platform. Singh said AI was built into the platform from the start, not added later. The company rewrote its entire technology stack to put AI fundamentals at the core, he explained. BusinessNext employs more than 1,300 people. It was last valued at $181 million in 2021, according to private market intelligence platform Tracxn. The company has raised over $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 whether traditional SaaS tools are worth the cost when AI-native alternatives emerge. ServiceNow has been expanding its enterprise software portfolio through acquisitions, investments, and partnerships to strengthen its position. Why It Matters For ServiceNow, the deal builds out its presence in banking by partnering with a company focused on AI-driven banking software. BusinessNext's platform uses AI agents to automate banking workflows while keeping sensitive customer data on private AI infrastructure, addressing regulatory and privacy requirements. The partnership signals growing convergence between enterprise workflow automation and specialized banking software. Financial institutions globally are under pressure to modernize operations, and the combination of ServiceNow's back-office strength with BusinessNext's customer-facing expertise could create a compelling offering for banks. What's Next BusinessNext plans to use ServiceNow's global sales network to expand in markets where it currently has limited presence. Overseas markets are expected to drive much of its future growth, Singh said. The two companies will jointly develop and market AI-powered solutions for financial services, combining their respective strengths in workflow automation and banking software. The partnership may also signal further consolidation in the enterprise software space, as established players seek to integrate specialized AI capabilities rather than building them entirely in-house.