Newsletter
Indian banking software startup BusinessNext has raised $40 million in a Series B funding round led by ServiceNow Ventures, the investment arm of US cloud software giant ServiceNow.
BusinessNext builds AI-powered software that helps banks manage customers, automate operations, process loans and improve sales and customer service. Its customer list already includes some of India's biggest financial institutions, such as HDFC Bank, Axis Bank and Kotak Mahindra Bank.
The deets: the funding values the Noida-based startup at $700 million, nearly four times its last reported valuation of $181 million in 2021. According to reports, US-based ServiceNow has acquired around a 5% stake in the company as part of the deal.
The fresh capital will be used to expand the company's Private AI capabilities for financial institutions and across Australia, New Zealand and in Southeast Asia.
Zoom out: ServiceNow's investment highlights BusinessNext's growing global presence. BusinessNext earns nearly half its revenue from international markets. Founder and CEO Nishant Singh expects overseas business to contribute most of the company’s future growth.
Big thing: the deal comes at a time when many businesses are rethinking the software they use. As AI-powered tools become more capable, companies want software that can do more than traditional SaaS platforms.
For ServiceNow, partnering with BusinessNext strengthens its presence in the banking sector while expanding its portfolio of AI-driven enterprise software.
