Kustomer Raises $60 Million Series E to Accelerate Transformation of Customer Service

Yesterday, we announced our $60M Series E funding round led by Coatue. I wanted to take a few minutes and talk about reimagining customer service and the future of Kustomer.

I’ve always been passionate about great customer experiences. I live it everyday in my personal life when buying from companies that make it easy to do business with them and I’ve founded three companies dedicated to changing the way businesses serve their customers.

Most importantly, I’ve seen that a maniacal focus on customer service wins every time.

Over the years, I have talked with hundreds of customer service leaders and although they have wanted to deliver exceptional customer experiences, their legacy ticket-centric technology solutions could not effectively enable these leaders to meet the expectations of today’s consumers – forget about exceeding those expectations.

So in 2015, my co-founder, Jeremy, and I started Kustomer to transform the customer service experience by making it more personal as well as less stressful and time consuming.

The Power of a Customer-Centric Platform

We believed that putting the customer at the heart of an intelligent, truly omnichannel solution would provide businesses the competitive edge they needed to succeed in an on-demand, experience-based world.

The Kustomer platform uses intelligence to automate repetitive, manual tasks and provide service agents unprecedented insight into a customer’s history. By unifying customer activity and interaction history from all of a company’s systems on the Kustomer timeline, agents have data-driven, actionable conversations without changing screens.

As a true omnichannel platform customers and agents can switch between different channels as needed during a conversation, while maintaining the context to progress conversations forward without customers repeating information. Kustomer supports seamless communication through email, chat, SMS, voice, WhatsApp, Facebook Messenger, and Twitter.

Continued Investment in our Product, Customers, and Global Expansion

We are on a mission to enable every business to deliver exceptional customer service. With our $60 million Series E funding round, we will dramatically accelerate our already aggressive plans to build on our unprecedented growth. This includes significant expansion of our global footprint, the launch of additional data centers around the world, and heavy investment in our product and engineering teams to drive even greater platform innovation.

Our R&D investment will speed up our rapid pace of platform innovation to help our clients increase customer satisfaction, build loyalty, and deliver standout service more efficiently than ever.

In particular, we will take the capabilities of recently announced KustomerIQ to the next level by infusing Machine Learning into all aspects of customer service, so clients can provide smart, personalized, and automated customer experiences. Additionally, by the end of the year, we will roll out next generation CRM functionality that will further establish Kustomer as the system of record for managing customer experiences and expand our clients’ ability to seamlessly work together across departments to service customers.

These innovations will further extend our technical advantage over outdated, legacy solutions and more importantly help our clients and their agents succeed.

World Class Clients

It’s my firm belief that Kustomer wins only if our clients win and we’re committed to investing in ensuring our clients have world-class support from us. I want to thank all of our clients who have joined us on this journey to reimagine customer service and look forward to continuing these partnerships in the years ahead.

Strong Support from the Best Investors

This round of funding was led by new investor, Coatue with participation from existing investors Tiger Global Management and Battery Ventures and brings our total funding to $173 million. I am honored to work with all of our investors. They are an elite group whose thoughtful insights and strong support has been critical to our rapid growth. And I am excited to now partner with Coatue who true believers in our mission and our ability to achieve it.

A Great Krew

Finally, I want to thank our employees. Without the commitment, tenacity, and intelligence of the Krew in support of our clients and the development of best-in-class technology none of this would be possible.

Even with our rapid growth and success to date we have much to do, but I am excited by the challenges ahead and the opportunity to make personalized, efficient, and effortless customer service a reality for businesses and consumers around the world.

Kustomer Raises $60 Million To Further Transform Customer Service

Series E funding round is led by Coatue with participation from existing investors Tiger Global Management and Battery Ventures

NEW YORK, NY — December 4, 2019 — Kustomer, the SaaS platform reimagining enterprise customer service, announced today it raised $60 million in Series E funding. This latest round of financing was led by Coatue with participation from current investors Tiger Global Management and Battery Ventures. Over the last 18 months, Kustomer has raised $161 million of funding across four rounds, bringing the company’s total funding to $173.5 million.

“Kustomer is transforming customer service as we know it. At a time when consumers want intelligent, personalized attention, the most forward-looking companies are turning to Kustomer to help them exceed expectations,” said CEO and Co-Founder Brad Birnbaum. “We are seeing rapid adoption over legacy brands like Salesforce and Zendesk and are in a position of strength across all key business metrics as we raise our Series E. With this latest fundraise, we plan to continue our global expansion and heavily invest to help our clients deliver exceptional customer service.”

“Kustomer’s differentiated, omnichannel approach is fundamentally reshaping the industry standard as trends in customer service continue to shift and consumers seek increasingly personalized interactions with brands,” said Coatue Co-Founder Thomas Laffont. “We look forward to working with Brad and his team as they continue to execute their strategic growth plan.”

Founded in 2015, Kustomer empowers businesses to succeed in today’s customer-first world. Kustomer’s comprehensive solution uses CRM and provides a single view of the customer journey, seamless omnichannel communications, and the ability to automate business processes and knowledge management. The company is powering satisfaction and loyalty for some of today’s most iconic, people-first brands, including Glossier, Ring, ThirdLove, Rent the Runway, Sweetgreen, Glovo, Away, and UNTUCKit.

“’Putting Customers First’ is the most important core value we have internally at ThirdLove and our objective is to listen to, respect and delight our customers, always,” said David Spector, Co-Founder at ThirdLove. “Since we switched to Kustomer, ThirdLove’s Fit Stylists and team managers finally have the ability to meet the personalized needs of our customers, however they want to communicate with us and across every channel. Our teams are more efficient and better trained, and our customers are happier – nothing makes me more thankful as a founder!”

During 2019, Kustomer delivered significant platform enhancements and innovation. Most recently, the company announced KustomerIQ, which embeds Artificial Intelligence and Machine Learning across the platform to enable companies to provide smarter, automated, and more personalized customer experiences. In September, Kustomer launched its first EU data center in Dublin to better serve its growing international client base. And by the end of this year, Kustomer plans to roll out next-generation CRM capabilities that will further establish the platform as the system of record for managing customer experiences.

Over the last quarter, Kustomer has also added three key executives. Gabe Larsen joined as VP, Marketing from Xant (formerly InsideSales.com). Mike Chapin, formerly of Knewton, will serve as VP, General Counsel, and Secretary. Tanya Livingstone also joins Kustomer from Knewton as VP, People. “As we look to the future and our next phase of growth, we are fortunate to have Gabe, Mike, and Tanya join us. These three leaders will play a big role in scaling our business for success as we plan to double our headcount in the next twelve months,” says Birnbaum. “I look forward to working with these talented executives and welcome them to the Krew.”

To learn more about Kustomer visit www.kustomer.com or reach out by email to info@kustomer.com

 
About Kustomer
Kustomer is the omnichannel SaaS platform reimagining enterprise customer service to deliver standout experiences – not resolve tickets. A customer-centric solution, Kustomer helps brands increase satisfaction and loyalty by empowering agents to engage customers in personalized, efficient, and effortless conversations. Today, Kustomer is the core platform of some of the leading customer service brands like Glossier, Ring, ThirdLove, Rent the Runway, Sweetgreen, Glovo, Away, UNTUCKit. Headquartered in NYC, Kustomer was founded in 2015 by serial entrepreneurs Brad Birnbaum and Jeremy Suriel, has raised $173.5M in venture funding, and is backed by leading VCs including: Coatue, Tiger Global Management, Battery Ventures, Redpoint Ventures, Cisco Investments, Canaan Partners, Boldstart Ventures and Social Leverage.

 
For Media Inquiries:
Cari Sommer
RAISE Communications
info@raisecg.com
 

Kustomer’s $40 Million Series D Brings Personalized, Efficient, and Effortless Customer Service to all Enterprises

A note from our CEO Brad Birnbaum

Read the full series D press release here.

Zappos and other companies with a similar “do anything for the customer” mindset have changed what’s expected from customer service – forever. Now, whether a year old or fifty years old, companies across industries and around the world are trying to provide the rich customer experiences necessary to compete.

This is why my Co-Founder Jeremy and I started Kustomer. After years of building technology for contact centers, we made it Kustomer’s mission to reimagine how a software platform could make personalized, efficient, and effortless customer service a reality.

Our latest round of funding, a $40 million Series D announced yesterday, will further accelerate the development of the Kustomer platform and help our customers deliver an even better service experience to their customers. Led by Tiger Global Management, this round of funding is our third in the past twelve months following our Series C this past January and our Series B last June, and brings our total funding to $113.5 million.

We are humbled to have had each of these rounds led by three of the leading venture firms in Redpoint Ventures, Battery Ventures, and now Tiger Global Management. All of our investors offer us tremendous expertise, sound business insights, and support a CEO can only dream of receiving. The opportunity to now partner with Tiger Global Management is particularly exciting as they are true believers in the customer service and CRM spaces and share our vision for the future.

That future is a bright one because of the dedication of our Krew to building a next-generation platform and developing strong relationships with our customers. Through their efforts we have grown by 350% over the past year and extended our technical lead over legacy, outdated solutions in the space.

The Kustomer platform uses intelligence to automate repetitive, manual tasks and provide service agents unprecedented insight into a customer’s history. By unifying customer purchase and activity history from all of a company’s systems on the Kustomer timeline, agents have data-driven, actionable conversations without changing screens. As a true omnichannel platform customers and agents can switch between different channels as needed during a conversation, while maintaining the context to progress conversations forward without customers repeating information. Kustomer supports seamless communication through email, chat, SMS, voice, Facebook Messenger, and Twitter.

The additional funding dramatically increases our runway even as we ramp up our already aggressive plans to build on our unprecedented growth. This includes significant investments in our product and engineering teams to drive innovation. In particular, we will double down on artificial intelligence and machine learning to further enhance our business process automation capabilities. We will also continue our international expansion and will open our European data center later this summer. Most importantly, we will enlarge our customer experience team to ensure that our customers receive the same strong support from us that they provide to their customers.

Finally, I want to thank all of our customers who make this journey possible. Your passion and customer-first focus is an inspiration to us everyday. Thank you.

Kustomer Raises $40 Million in Series D Funding, Accelerates Growth of Enterprise Customer Service Platform

Round led by Tiger Global Management with participation by Battery Ventures

Hear from our CEO Brad Birnbaum as he reflects on Kustomer’s series D funding.

NEW YORK, NY — May 29, 2019 — Kustomer, the SaaS platform that is reimagining enterprise customer service, today announced its $40 million Series D funding round led by Tiger Global Management, with participation from current investor Battery Ventures. This marks the company’s third round of financing in less than twelve months and brings the company’s total funding to $113.5 million, following its recent $35 million Series C raise in January of this year.

Founded in 2015, Kustomer empowers businesses to provide the customized, data-driven support necessary to succeed in today’s customer-first world. Its platform uses intelligence to automate repetitive, manual tasks and provide service agents unprecedented insight into a customer’s history. Leveraging customer data and omnichannel communication capabilities enables companies to seamlessly connect with their customers in ways unavailable in other products. Kustomer is the only company to provide the technology and tools needed to meet the growing expectations of today’s consumer. The Kustomer platform is used by today’s leading service-oriented brands including Ring, Rent the Runway, Glovo, Glossier, Away and UNTUCKit.

“Today’s successful businesses are using Kustomer to deliver personalized, responsive, and high value service in less time and at less cost. As a result, we have seen our growth trajectory outpacing many successful enterprise SaaS vendors at a similar stage. Looking to the future, we will use these funds to further invest in automated intelligence and ensure the platform extends our lead in innovation over legacy systems such as Salesforce and Zendesk.  We are excited to continue to accelerate our growth and bring increasingly intelligent and differentiated solutions to our customers,” said Brad Birnbaum, CEO and Co-founder of Kustomer.

This funding round comes after a year of explosive growth for the company. In the past twelve months, Kustomer grew by 350% and expanded operations to Raleigh-Durham, North Carolina. Kustomer will also continue to grow abroad by increasing its European presence and plans to double its overall staff size worldwide by the end of this year.

In addition, Wendi Sturgis, the CEO of Yext Europe and Chief Client Officer at Yext, has joined Kustomer’s Board of Directors as an independent board member. A seasoned technology executive, Sturgis  has held leadership positions at world-class technology companies, including Oracle, Gartner, Right Media, and Yahoo!. “Kustomer is one of the fastest-growing startups in its space, and I am pleased to join them on their mission to redefine what it means to truly put the customer first, radically shift the approach to customer management and ultimately manifest this in state-of-the-art marketing automation,” said Sturgis. “Plus, when it comes to leadership teams, I am drawn most to disruptors — but only those with the highest integrity. I could not have chosen better, in coming to work with Brad Birnbaum and the incredible team he has assembled.”

 

About Kustomer
Kustomer is the omnichannel SaaS platform reimagining enterprise customer service to deliver standout experiences – not resolve tickets. Built with intelligent automation, Kustomer scales to meet the needs of any contact center and business by unifying data from multiple sources and enabling companies to deliver effortless, consistent and personalized service and support through a single timeline view. Today, Kustomer is the core platform of some of the leading customer service brands like Ring, Rent the Runway, Glossier, Away, Glovo, Slice and UNTUCKit. Headquartered in NYC, Kustomer was founded in 2015 by serial entrepreneurs Brad Birnbaum and Jeremy Suriel, raised over $113.5M in venture funding, and is backed by leading VCs including: Tiger Global Management, Battery Ventures, Redpoint Ventures, Cisco Investments, Canaan Partners, Boldstart Ventures and Social Leverage.

To learn more about Kustomer visit www.kustomer.com or reach out by email to info@kustomer.com

 

For Media Inquiries:
Cari Sommer
RAISE Communications
info@raisecg.com
646-480-7683

 

From Series B to Series C in 6 Months…And You Haven’t Seen Anything Yet

A note from our CEO Brad Birnbaum

It’s been an incredible few months filled with exciting activities and milestones here at Kustomer. We have much to celebrate! It’s hard to imagine we raised our Series B only six months ago, and here we are, celebrating another huge milestone – our $35 Million Series C led by Battery Ventures.

I couldn’t be more proud, and like any proud CEO – I want to give you a brief taste of our Krew’s journey this past year, including a sneak peak of what’s to come.

2018 was a terrific year for everyone here at Kustomer. I can report our Krew keeps doing what we do best – building a cutting-edge product, growing a solid team and deepening friendships with our customers. We’ve grown revenue by 500% year-over-year. 500%! That puts us as one of the fastest growing startups against industry benchmarks!

The Kustomer platform is second to none. We provide a next-generation alternative to outdated technologies. We’re a solution to an endless queue of tickets that weighs companies down and frustrates their agents and customers. We designed our platform from scratch, focusing on a first-of-its-kind data model and incorporating a single view of customer interactions in our timeline. We are the disruptor brand – focused and fierce.

And we’re being noticed.

Brands at the top of their game, logos like Glossier, Away, UNTUCKit, Ring and others, are the companies who choose Kustomer. We’re also being noticed by our competition as we quickly take their market share, offering a better alternative to legacy and decades old products. Finally, we’re being noticed by the VCs. Kustomer is fortunate to have top VCs believing in our mission to disrupt the customer management space. Adding Battery Ventures continues to level up the prestige of our investment team. We’re disrupting one of the largest growing SaaS markets in the world.

I am especially excited to have Neeraj Agrawal join the Kustomer Board of Directors. You may already know Neeraj as the originator of the T2D3 (triple, triple, double, double, double) cadence for measuring hyper-growth in startups. He’s a seasoned investor and has been supporting the momentum of great products and companies. Check out the Midas list. He’s been a member of this exclusive group for 8 consecutive years!

With the additional capital, we’re investing in growth.

2019 will be epic. There’s so much on the horizon for Kustomer and many opportunities ahead of us this year. If you haven’t noticed our new branding, check out our new website. We’re maturing as a company and I am proud of our brand’s new look and feel. We will continue accelerating our go-to-market strategy and investing in our marketing and sales organizations to reach a wider base of companies, faster.

We’re also continuing our international expansion this year. With brands like Glovo and Paddle in the EU using Kustomer every day, we feel this market is ready for us. We’re targeting more up-market companies.

The Kustomer platform will continue to add capabilities and innovations as it evolves. Our product roadmap is extensive and includes significant investment in AI and efficiency capabilities. Keep an eye for our product releases and announcements throughout the year. Exciting stuff is coming your way.

We’re doing all this for our customers. The most passionate, people-first brands, because like you, our customers always come first. That will never change; no matter what we take on in the future. Without our customers, none of our achievements would be remotely possible.

Kustomer is the first company making real Customer Friendships possible.

And we’re only getting started.

Come with us.

Brad

Kustomer Raises $35M Series C

 

Check out our most recent round of series D funding.

Exciting news from Kustomer today! Read the full release below and follow us on social for our execs and investors’ take on the news.

Kustomer Raises $35M Series C Led by Battery Ventures, Further Challenging Salesforce and Zendesk as it Expands Into the Enterprise Market.

  • Demonstrates explosive 500% year-over-year growth.
  • Plans to accelerate product and market expansion.
  • Adds Neeraj Agrawal, General Partner at Battery Ventures, to Board of Directors.

Kustomer, the next-generation customer management platform for the people-first enterprise, announced today a $35 million Series C round led by Battery Ventures, bringing Kustomer’s total funding to $73.5 million. The investment comes just 6 months after its Series B round in June of 2018. Kustomer plans to use the capital to accelerate its go-to-market strategy, expand internationally, and invest in its platform, launching new products while cementing its position as the next-generation alternative to legacy solutions like Salesforce, Oracle and Zendesk.

Neeraj Agrawal, a general partner at Battery Ventures and a seasoned B2B software investor, joins Kustomer’s Board of Directors. Battery Ventures joins current investors Redpoint Ventures, Canaan Partners, Boldstart Ventures, Social Leverage and Cisco Investments who also participated in the round.

“From early on, leading brands in the B2C and DTC segments were attracted to Kustomer because we provide a next-generation alternative to outdated technologies and a solution to an endless queue of tickets that’s weighing companies down and frustrating their agents and customers,” said Brad Birnbaum, CEO of Kustomer. “Kustomer’s first-of-its-kind data model and one, single timeline view of customer interactions and events have differentiated us from legacy solutions and are the basis for our 500% year-over-year growth.”

Kustomer’s explosive growth has been driven by its ability to attract large companies with thousands of service agents, rising frustration from existing outdated solutions that fail to deliver on their customer experience promise, the need for business process automation to drive efficiencies, and an overall shift in approach to customer management.

“We’ve been closely following Kustomer’s impressive growth and see a large opportunity for the company to become one of the top players in this market—owing mainly to its powerful platform, experienced team and ability to execute on its vision,” said Battery’s Agrawal. “We’re excited to leverage Battery’s global network and company-scaling expertise to partner with Brad and the rest of the Kustomer team to help the company expand further into the enterprise market.”

NYC-based Kustomer is one of the fastest-growing startups in its space. The company’s growth momentum is demonstrated by the expanding list of disruptive and innovative brands – like Ring, Rent the Runway, Glovo, Glossier, Away, Slice, Sweetgreen and UNTUCKit – using Kustomer to deliver on their people-first promise everyday.

“Since switching to Kustomer from Desk.com, we’ve seen a 30-second decrease in handle time for voice interactions, a 25% overall improvement in efficiency and productivity from our team members, and a significant improvement in our FCR rate,” commented Mike Vroom, Customer Service Director at the click and brick retailer UNTUCKit. “I knew we were going to be more efficient with Kustomer, but I didn’t know HOW much more efficient. The ease of use has been really flawless, and everything our team members need is finally all in one place.”

“Kustomer has completely transformed our customer support operation here at Glovo.” Remarks Sergi Mendez, Global Head of Live Operations Support. “We are a three-sided marketplace, meaning our 2,000 agents provide support for our Glovers, merchants, and consumers. Through powerful workflows and simple integrations, our agents are able to handle over 1.8 million conversations per month across multiple channels without switching interfaces/platforms. Since switching to Kustomer, we have increased efficiency and are constantly improving live support to our users in over 20 countries across the globe.”

To keep up with growing demand, Kustomer has doubled the size of it’s workforce in 2018 and is planning on more than doubling it again in 2019. Today it is also announcing key senior leadership appointments, bolstering its leadership team capabilities as it takes on giant industry leaders and continues its growth momentum:  Amir Oren as VP of Finance (Formerly of Talkdesk, Zendesk and Dropbox), Nelly Rinot as VP of Marketing (Formerly of NICE, RRD and Radware), Alex Gadd as VP of Customer Experience (Formerly of SugarCRM and Oracle), and the promotion of Vikas Bhambri to SVP, Global Sales and Customer Experience (Formerly of Oracle, LivePerson and 8×8).

“We are fortunate to have incredible depth and breadth of talent across Kustomer’s executive team,” said Birnbaum. “As we start executing on our strategy, I strongly believe the new appointments will help us tightly integrate all functions of the company and will help pave the way to our continued success in revolutionizing the customer management, service and support space in 2019 and beyond.”

Media Contact: Stacey Dolchin, (212) 497-1188, stacey@kustomer.com

 

About Kustomer:

Customer Friendships are created with Kustomer. Our customer management platform for the people-first enterprise is intelligent, powerful and flexible, and scales to meet the needs of any contact center and business. Agent-friendly as well as customer-friendly – Kustomer unifies data from multiple sources, enabling companies to deliver effortless, consistent and personalized service and support through a single timeline view. Today, Kustomer is the core platform of some of the leading People-first brands like Ring, Rent the Runway, Glossier, Away, Glovo, Slice, Sweetgreen, Stella & Dot, and UNTUCKit. Headquartered in NYC, Kustomer was founded in 2015 by serial entrepreneurs Brad Birnbaum and Jeremy Suriel, raised over $70M in venture funding, and is backed by leading VCs including: Battery Ventures, Redpoint Ventures, Canaan Partners, Boldstart Ventures, Social Leverage and Cisco Investments.

To learn more about Kustomer visit www.kustomer.com or reach out by email to media@kustomer.com.

 

About Battery Ventures:

Battery strives to invest in cutting-edge, category-defining businesses in markets including software and services, Web infrastructure, consumer Internet, mobile and industrial technologies. Founded in 1983, the firm backs companies at stages ranging from seed to private equity and invests globally from offices in Boston, the San Francisco Bay Area, London, Israel and New York. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery’s portfolio companies here.

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