ServiceNow takes 5% stake in BUSINESSNEXT at $700 million valuation to accelerate AI push

Global software major ServiceNow has acquired a 5% stake in banking technology company BUSINESSNEXT through a $40 million Series C investment, valuing the company at $700 million, as the two companies deepen their partnership around artificial intelligence and autonomous banking.

BUSINESSNEXT plans to use the capital for research and development (R&D), go-to-market initiatives and expansion into new markets, Founder and CEO Nishant Singh told CNBC-TV18 in an interview.

“Companies like us will always deploy a lot of capital, both in R&D and GTM functions,” Singh said.

The investment also brings together complementary technology platforms. BUSINESSNEXT focuses on front-office banking capabilities, while ServiceNow has a strong presence across mid- and back-office operations. The companies are seeking to create a more integrated technology layer for banks as financial institutions deploy AI across multiple functions.

“Together, this partnership gives us the complete unified fabric, front to back, which banks can now exploit and really fast-track their autonomous journey,” Singh said.

AI agents and the push towards autonomous banking

The partnership comes as banks globally increase their use of artificial intelligence, even as many continue to operate on legacy technology infrastructure.

Singh said autonomous banking would require more than using AI for individual decisions or deploying isolated AI agents. In his view, banks will need systems that can continuously sense data, make decisions and take action across multiple channels.

The integration of BUSINESSNEXT's AI agents with ServiceNow's AI Control Tower is expected to give banks greater visibility and control over their growing network of AI systems.

As banks deploy AI agents for different functions, the ability to discover, coordinate, monitor and control those systems is becoming increasingly important. The partnership aims to combine BUSINESSNEXT's capabilities in AI agent discovery, coordination and observation with ServiceNow's AI Control Tower.

BUSINESSNEXT remains profitable as it invests in growth

Despite its focus on R&D and expansion, BUSINESSNEXT remains profitable, Singh said.

The company has recorded a compound annual growth rate of around 30% over the past five years and has remained EBITDA-positive. Singh said the company has sought to balance investments in growth with financial discipline.

“Profitability is like our DNA. So even today, we are profitable. We're EBITDA-positive,” he said.

The company may increase spending in some years to invest in technology or enter new markets, but profitability remains a key part of its operating model.

Private AI becomes a focus for banks

BUSINESSNEXT is also focusing on private AI for banks, where data governance, regulatory compliance and data sovereignty are key concerns.

Singh distinguished between sovereign AI, which focuses on keeping data within a particular country, and private AI, which gives organisations greater control over how their data is used.

“For banking, sovereign AI is not enough. You really need to have private AI,” he said.

Banks are increasingly concerned about their data being used to train external AI models. BUSINESSNEXT's approach is aimed at allowing financial institutions to deploy AI in controlled environments, including on hyperscale cloud infrastructure or their own computing systems.

The company's experience with financial sector regulations, including its work with the Reserve Bank of India, is also expected to support auditability and control requirements for AI-based decisions.

International expansion in focus

BUSINESSNEXT currently works with more than 120 financial institutions and has several major Indian banks among its customers.

The company is now looking to expand its presence in international markets, Singh said.

“We just focus on executing and kind of taking dominance one market at a time,” he said.

An initial public offering remains a possibility in the future, but Singh said the immediate focus is on business execution and international expansion.

Singh also identified India as an important market for developing banking technology, citing the country's digital public infrastructure and the scale of transactions handled by its financial system.

He said India's experience in building high-volume, low-cost digital financial infrastructure could help Indian banks and technology companies develop solutions for global markets.