Total amount raised
$233.5 Millions
Latest funding date
5/1/2023
Location
Kustomer has successfully raised significant funding over multiple rounds, culminating in its acquisition by Meta for $1 billion. The platform specializes in omnichannel SaaS CRM solutions, integrating AI to enhance customer service efficiency.
Keep reading to explore the intricacies of Kustomer's fundraising journey and the investors backing this innovative platform.
What Is Kustomer?
Kustomer, founded in 2015 by Brad Birnbaum and Jeremy Suriel, is headquartered in Short Hills, New Jersey. The company specializes in providing an omnichannel SaaS CRM platform designed to enhance customer service experiences.
By unifying data from multiple sources, Kustomer enables businesses to deliver service and support through a single timeline view. This innovative approach has attracted leading brands such as Ring, Glovo, and Glossier.
With a workforce of 251-500 employees, Kustomer continues to scale its operations, leveraging AI to meet the evolving needs of modern contact centers and businesses.
How Much Funding Has Kustomer Raised?
- Seed Round
- Amount Raised: $2.5M
- Date: September 2015
- Lead Investors: boldstart ventures, Social Leverage
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and build the core team.
- Series A
- Amount Raised: $10M
- Date: September 2016
- Lead Investors: Canaan Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the product features and scale the customer base.
- Series B
- Amount Raised: $26M
- Date: June 2018
- Lead Investors: Redpoint
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the platform's AI capabilities and support international expansion.
- Series C
- Amount Raised: $35M
- Date: January 2019
- Lead Investors: Battery Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and further develop AI-driven customer service tools.
- Series D
- Amount Raised: $40M
- Date: May 2019
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and improve the platform's scalability.
- Series E
- Amount Raised: $60M
- Date: December 2019
- Lead Investors: Coatue
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and support strategic acquisitions.
- Venture Round
- Amount Raised: $60M
- Date: May 2023
- Lead Investors: Battery Ventures, Redpoint
- Valuation at Round: $250M
- Motivation Behind the Round: To expand the team, integrate new AI technology, and improve automated support.
Total Amount Raised: $233.5M. Current Valuation: $250M.
Key Investors
- Battery Ventures
- Details: Battery Ventures is a global, technology-focused investment firm. They invest in companies at all stages, from seed to growth and buyout.
- Investment Focus Areas: Technology, software, web infrastructure.
- Notable Investments: Nutanix, Coupa Software, Glassdoor.
- Redpoint Ventures
- Details: Redpoint Ventures is a venture capital firm that focuses on early and growth-stage investments. They have a strong track record in backing innovative technology companies.
- Investment Focus Areas: Early-stage technology, consumer technology, enterprise technology.
- Notable Investments: Netflix, Stripe, Twilio.
- Coatue
- Details: Coatue is a global technology-focused investment firm. They manage both public and private equity funds.
- Investment Focus Areas: Technology, media, telecommunications.
- Notable Investments: Snap Inc., DoorDash, ByteDance.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on private and public companies in the global Internet, software, consumer, and financial technology sectors.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- Canaan Partners
- Details: Canaan Partners is a venture capital firm that invests in early-stage companies. They have a diverse portfolio across various sectors.
- Investment Focus Areas: Healthcare, technology.
- Notable Investments: LendingClub, Ebates, Match.com.
What's Next for Kustomer?
As Kustomer spins out from Meta with a fresh $60 million in funding, the company is poised to seize significant opportunities. The infusion of capital will enable Kustomer to expand its team, enhance its AI technology, and improve its customer data platform. These advancements are crucial as the industry trends towards integrating AI and automation in CRM platforms, offering faster and more accurate support through modern messaging channels like Instagram, WhatsApp, and Facebook Messenger.
Looking ahead, Kustomer's successful funding round and positive investor sentiment suggest potential for future fundraising. This financial backing will be essential as the company navigates challenges such as intense competition in the CRM space and the need to keep pace with rapid AI advancements. Maintaining seamless integration with various communication channels and scaling operations efficiently will be critical for Kustomer's sustained growth and market presence.
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