StageUnattributed VC | Alive
Last Raised$60M | 22 days ago
Mosaic Score The Mosaic Score is an algorithm that measures the overall financial health and market potential of private companies.
+140 points in the past 30 days
Kustomer is an omnichannel customer management platform for enterprises. It unifies data from multiple sources and enables companies to deliver personalized service and support through a timeline view. It serves retail, e-commerce, travel, education, and other sectors. The company was founded in 2015 and is based in Short Hills, New Jersey.
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ESPs containing Kustomer
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The help desk software market refers to a software solution designed to help organizations manage customer support and service requests efficiently. It enables organizations to streamline their support operations, automate workflows, and improve customer satisfaction. Help desk software typically includes features such as ticket tracking, knowledge base management, chatbots, and reporting. Custome…
Kustomer named as Leader among 5 other companies, including Gorgias, Gladly, and Front.
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Research containing Kustomer
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CB Insights Intelligence Analysts have mentioned Kustomer in 2 CB Insights research briefs, most recently on Feb 24, 2021.
Feb 24, 2021Visualizing Tech Giants’ Billion-Dollar Acquisitions
Expert Collections containing Kustomer
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
Kustomer is included in 4 Expert Collections, including Artificial Intelligence.
This collection includes startups selling AI SaaS, using AI algorithms to develop their core products, and those developing hardware to support AI workloads.
Tech IPO Pipeline
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Customer Service Tech
Companies offering technology-driven solutions for brands and retailers to enable customer service before, during, and after in-store and online shopping.
Latest Kustomer News
May 30, 2023
Share The divestiture of Kustomer would help Meta strengthen its core business aspects; Kustomer marks the divestment as the "next chapter" Guildford, United Kingdom - May 30, 2023 /PressCable/ — The tech giant Meta, formerly known as Facebook, has reportedly decided to liquidate its majority stake in the business software provider, Kustomer. Under the deal, Meta would remain the single largest stakeholder of Kustomer but with no seat on its board. With the divestment, Meta’s grand experiment in rolling out a high-end enterprise-grade customer service platform has ended, reported Yahoo! Finance . The parent of Facebook is selling Kustomer back to its original partners—Battery Ventures, Redpoint Ventures, and Boldstart Ventures—in exchange for funding its ongoing operations. Under the deal, each of the previous backers would invest a capital of $60M, giving the business-software startup a valuation of roughly $250M. Meta is trading its ownership of the CRM system for a passive minority stake. Brad Birnbaum, the CEO, and Co-Founder of Kustomer, will remain at the helm of the spun-out business. The spin-out is tied to Meta’s “efficiency effort”, which is expected to help the company refocus on its core business aspects and ensure more streamlined operations. “In light of Meta’s efficiency efforts, we’ve made the decision to focus on our fastest-growing business messaging offerings, including the monetization opportunity for WhatsApp,” according to a spokesperson from Meta. Meta acquired Kustomer to double down the power of social media. The deal to acquire Kustomer was valued at around $1 billion and was inked in 2020. The acquisition of Kustomer was completed last year after a one-year-long regulatory scrutiny and was marked as a powerful enabler for bringing Messenger and WhatsApp to customer service environments. However, Meta’s integration with a range of Kustomer’s competitors (e.g., Hubspot) put the value proposition of the Meta-Kustomer deal in question. On top of this, despite this high-profile buy-in, the revenue growth curve of Kustomer flattened last year—with the company burning through around $200M. That said, with the integration, Meta enabled customers to use WhatsApp to message, search for, and buy from businesses natively on the platform. Even though a CRM can help Meta achieve these new business goals and store customer experience data, it shouldn’t necessarily be a first-party system. Collaborating with third-party systems could also let Meta enable businesses to manage communications with their customers through Messenger and WhatsApp. Recognising the above points, Meta decided to offload Kustomer and shift back to its core business. After its divestment , Kustomer will operate as a standalone business with a fraction of the headcount (around 90 staffers) it had under Meta. However, the CEO Kustomer radiated optimism. "It’s a significant milestone for Kustomer as we begin our next chapter as an independent company,” said the CEO. Kustomer strongly believes spinning out was in the best interest of the company, customers, and employees, and we are very excited to continue to enhance our world-class platform in ways we couldn’t have imagined only a few years ago using advanced automation and generative AI." Meta’s plan to spin off Kustomer was first reported in March 2023 amid a major restructuring, business flattening, and cost-reduction effort at the company. The company’s “year of efficiency” has also included laying off 21,000 employees, canceling low-priority projects, and downsizing its hiring rate. Even though equity divestment is common in the M&A industry, it’s a highly intricate process that requires coordinated efforts to become successful. For businesses looking to efficiently divest their business units, investing in a high-end M&A service provider such as Fission Consulting is a sensible decision. Leveraging M&A and IT expertise, an industry-leading service can efficiently navigate a complex transformational project, ensuring minimal business disruptions. Holding a minority stake in the Kustomer would enable Meta to develop new products with the CRM business and serve the customers that Meta picked up while owning the CRM. Contact Info:
Kustomer Frequently Asked Questions (FAQ)
When was Kustomer founded?
Kustomer was founded in 2015.
Where is Kustomer's headquarters?
Kustomer's headquarters is located at 830 Morris Turnpike, Short Hills.
What is Kustomer's latest funding round?
Kustomer's latest funding round is Unattributed VC.
How much did Kustomer raise?
Kustomer raised a total of $233.5M.
Who are the investors of Kustomer?
Investors of Kustomer include BOLDstart Ventures, Battery Ventures, Redpoint Ventures, Meta, Plug and Play Japan and 13 more.
Who are Kustomer's competitors?
Competitors of Kustomer include Adeptia, Gladly, Zendesk, Spiro, Gorgias and 15 more.
Compare Kustomer to Competitors
Front is a customer communication platform. The company platform centralizes all conversations in a single place so companies can coordinate responses, comments, and message tracking. It caters its services to travel, logistics, finance, and more industries. It was founded in 2013 and is based in San Francisco, California.
Zendesk provides cloud-based customer service software. It takes customer communication from websites, emails, and phones, and turns it into a ticket for support teams and customers to use. It was founded in 2007 and is based in San Francisco, California.
Kayako offers an integrated customer service platform that connects businesses to their customers in a personal way. The platform is a combined chat and helpdesk that helps companies manage customer conversations across all channels.
DigitalGenius brings practical applications of artificial intelligence into the customer service operations of global companies. The company platform offers learning algorithms, which are trained on historical customer service transcripts and integrated directly into the contact center's existing software. It was founded in 2014 and is based in London, United Kingdom.
Gorgias builds a multi-channel helpdesk integrated with e-commerce merchants' back-offices. The company allows merchants to manage all of their support from one place. It connects all business apps and communication channels to provide support agents a unified view of their customers, as well as sets auto-responses to common customer requests. Gorgias helps merchants leverage support as a way to increase sales. The company was founded in 2015 and is based in San Francisco, California.
Gainsight provides customer success software solutions and helps businesses improve their customer relationships. It offers a range of tools for customer success teams to track customer behavior, monitor customer health, and engage with customers to increase satisfaction and loyalty. Gainsight was formerly known as JBara Software. It was founded in 2009 and is based in San Francisco, California.
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