CRM software maker Kustomer raises $60 million after leaving Meta

CRM software maker Kustomer raises $60 million after leaving Meta

Kustomer, a customer relationship management (CRM) platform that was acquired by Meta Platforms Inc (formerly Facebook) in 2020, said on Tuesday it had raised $60 million in financing as it spins out of the social media giant.

The Instagram owner has been focusing on its business-messaging offerings, including monetization opportunities for WhatsApp, in a bid to boost efficiency and focus on its fastest-growing segments. Meta has also been undergoing a series of job cuts and divestitures as it faces regulatory scrutiny and antitrust lawsuits.

Kustomer sells CRM software for businesses to communicate with consumers by phone, email, text messages, WhatsApp, Instagram and other channels. It had seen usage soar during the COVID-19 pandemic as more customers shifted to online shopping and digital interactions.

The company, whose new funding round was co-led by previous investors Battery and Redpoint, also said it will consider expanding its team and combining new artificial intelligence technologies into its platform.

The spin-off of Kustomer is a strategic move for both Meta and Kustomer, according to analysts. For Meta, it allows the company to avoid potential antitrust issues and focus on its core social media and metaverse businesses. For Kustomer, it gives the company more independence and flexibility to grow and compete in the CRM market.

“Kustomer is a leading CRM platform that helps businesses deliver personalized and seamless customer experiences across multiple channels,” said Neeraj Agrawal, general partner at Battery Ventures. “We are excited to continue supporting Kustomer as it spins out of Meta and pursues its vision of becoming the ultimate customer service platform for the digital era.”

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