Serval Raises $150 Million to Challenge ServiceNow
Serval Inc. raised $150 million in Series C funding to scale its AI-driven enterprise automation platform and compete directly with ServiceNow.
Enterprise service management startup Serval Inc. raised $150 million in a Series C funding round led by Sequoia Capital, bringing the company's valuation to $3 billion. Founded in 2024, the company uses its Catalyst product to allow non-engineers to build AI-driven automation for IT, HR, finance, and legal workflows using plain language.
Serval reports that its annual recurring revenue has doubled every quarter since December, with clients such as Lucid Motors and WPP migrating from ServiceNow to its platform. To support this growth, the company plans to hire over 500 employees and open new offices in New York, London, and Austin. It will also launch ProServal, a professional services arm that embeds automation engineers within customer organizations.
ServiceNow responded to the competition by launching Flow, a standalone AI service desk, and emphasizing its 98% renewal rate. However, ServiceNow stock fell over 25% on Thursday after the company missed third-quarter earnings expectations and provided weak fourth-quarter revenue guidance.
