Fb To Purchase Buyer Service Chat Startup Kustomer

Top line

Facebook announced on Monday that it would acquire the customer service startup Kustomer for an undisclosed amount. With this deal, the social media giant can develop its tools for companies that are already dependent on the advertising platform.

A Facebook employee walks past a “Like” sign in Facebook’s corporate office … [+] Campus in Menlo Park, California on October 23, 2019.

JOSH EDELSON / AFP via Getty Images

Key factors

The terms of the acquisition, which have yet to be approved by regulators, were not disclosed, but the Wall Street Journal reported Kustomer’s deal values ​​at just over $ 1 billion.

Kustomer pulls interactions from a single customer on different platforms like text or email on a single screen.

Facebook announced that it has decided to acquire after seeing an increase in customers using WhatsApp and other text services to contact businesses, and plans to provide Kustomer with resources to “scale its business To improve and innovate the product range and to inspire its customers ”.

Founded in 2015, Kustomer raised $ 173.5 million from Tiger Global Management, Coatue, Battery Ventures, Redpoint, Canaan Partners, Social Leverage, and Cisco Investments, according to Crunchbase.

Facebook said it will continue to support other customer relationship management programs that will be built into its messaging services.

Surprising fact

Kustomer is already used by large clients such as Rent the Runway, Glossier, Ring and Untuckit.

Key background

The deal is part of Facebook’s effort to become a small business hub to interact with customers and sell things through Facebook and Instagram. The tech giant announced Facebook shops back in May, which companies can use to create online storefronts on Facebook and Instagram. With the latest update from Instagram, the most significant redesign of the platform in years, a “Shop” tab is displayed on the home screen. Addressing companies is already lucrative for Facebook, as advertising revenue of 31.4 billion US dollars is expected in 2020 alone.

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