ServiceNow buys 5% of BusinessNext, values Indian software firm at $700 million

July 22 (Reuters) - ServiceNow has ‌acquired roughly 5% ​of ​BusinessNext in a deal that values the software provider at $700 million, as the Indian company looks to expand ‌its autonomous banking tools through a partnership with the U.S.-based ⁠software giant.

BusinessNext said on Wednesday it raised $40 million in a Series C round ‌from ServiceNow Ventures, a venture ‌capital arm of the company.

Here are some details:

• BusinessNext CEO Nishant Singh told Reuters that the funding will primarily be allocated ​to strengthening the company's sales efforts, initially focusing on expanding distribution in Southeast Asia and Australia.

• "Every company has to go to ⁠an IPO. Right now, we're not looking at the IPO part," he said, adding that ​BusinessNext's ambition "right now is to run in every bank in the world."

• The deal comes as banks are ​increasingly adopting AI tools offered by companies ‌like BusinessNext to customize services, address customer queries and automate operations, helping them in saving time and ⁠attract more customers.

• BusinessNext competes with companies like Freshworks and has more than 120 customers including India's largest lender State Bank of India and HDFC ⁠Bank.

• The company said this partnership that will allow for enhanced monitoring of ​BusinessNext's AI agents through ServiceNow's AI control tower, a centralized platform for managing and governing AI models and agents across an enterprise.

• Singh said BusinessNext has ‌been "above $50 million for a couple of years now" in annual revenue, adding that the company has nearly ‌1,300 employees.

• On Wednesday, ServiceNow raised its forecast for annual subscription ⁠revenue for the second time ‌after beating second-quarter revenue ​and profit estimates, driven by growing demand for its AI-powered software.

(Reporting by Jaspreet Singh in Bengaluru; Editing by ‌Shailesh Kuber)

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