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 Through their efforts we have grown by 350% over the past year and extended our technical lead over legacy, outdated solutions in the space.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.

Press Release: Kustomer Secures $26 Million in Series B Funding to Modernize Customer Experience

Check out our most recent round of series D funding.

Read the announcement from Kustomer’s CEO Brad Birnbaum here.

Kustomer, the modern CRM platform for customer experience, service, and support, announced today it has raised $26 million in a Series B financing round, bringing its total funding to $38.5 million. Redpoint Ventures led the round with participation from Series A investors Canaan Partners, Boldstart Ventures, and Social Leverage. Cisco Investments also joined as a new strategic investor. Additionally, Tomasz Tunguz, Partner at Redpoint Ventures, will join Kustomer’s Board of Directors to further propel the company’s goal of transforming the customer service industry.

“We have all experienced bad customer service. We saw there was a real need for a modern CRM platform that focuses on the customer, rather than a support ticket, in order to eliminate these negative experiences.” – Brad Birnbaum, Co-Founder and CEO, Kustomer

As the digital age continues to bring customer behavior changes, the business processes that handle customer data need to adapt accordingly in order to exceed customer expectations. The only way companies and brands can differentiate in the direct-to-consumer age is with a full view of the customer, enabled by a platform approach to CX and service rather than siloed applications and traditional, outdated support ticketing systems.

“We have all experienced bad customer service. We saw there was a real need for a modern CRM platform that focuses on the customer, rather than a support ticket, in order to eliminate these negative experiences,” says Brad Birnbaum, CEO and Co-Founder of Kustomer. “Kustomer’s single customer timeline and intelligent workflow engine enable companies to personalize and automate complex use cases that take time and resources, allowing service teams to be more effective and productive. For example, if you order a dress for a friend’s wedding that is supposed to be delivered during a snowstorm, you may be a little worried it might not show up in time. To add to the stress, you have to call support, wait on the line, and provide all the personal information the company should already have in order to find out. With Kustomer, support agents already have your information and are able to proactively reach out to you on email or SMS to let you know about the delay, will provide an option to choose an alternate dress at no extra cost, and can update the shipping address as needed. Kustomer is providing modern service for the modern consumer.”

“Kustomer aligns with our approach of providing exceptional customer experiences by leveraging their platform to better empower our teams, and in turn, our customers.” – Jamie Siminoff, Founder and CEO, Ring

Kustomer’s CRM platform for customer experience enables service organizations to know everything about every customer. Kustomer empowers agents with real-time omnichannel capabilities and delivers personalized, memorable experiences at scale by integrating all business data and automating intelligent workflows, resulting in higher lifetime value.

“It is time for disruption in the customer support industry, and Kustomer is leading the way.” – Tomasz Tunguz, Partner, Redpoint Ventures

Kustomer has experienced rapid growth since it was founded in 2015, including clients with thousands of service agents, some of which are industry disruptors themselves. Jamie Siminoff, Founder and CEO of Ring explains, “By switching to Kustomer, we were able to lower our overall service and customer experience costs, while also increasing our team members productivity. Kustomer aligns with our approach of providing exceptional customer experiences by leveraging their platform to better empower our teams, and in turn, our customers.”

“It is time for disruption in the customer support industry, and Kustomer is leading the way,” said Tomasz Tunguz, partner at Redpoint Ventures. “Kustomer has had impressive traction to date, and we are confident the world’s best B2C and B2B companies will be able to utilize the platform in order to develop meaningful relationships, experiences, and lifetime value for their customers. This is an exciting and forward-thinking platform for companies as well as their customers.”

Kustomer will use this round of funding to expand its platform and focus on intelligence, integrations and enterprise capabilities as it continues to take on larger opportunities. Leveraging its rich customer data in the platform, Kustomer will broaden its capabilities starting with engagement. The company anticipates doubling its team within the next twelve months by expanding both domestically and internationally. Kustomer aims to enable all companies to provide memorable experiences by becoming customer-centric.

About Kustomer:
Kustomer is the modern platform for customer experience, service, and support that focuses on customers, not tickets, enabling companies to know everything about every customer to drive informed actions. Used by industry leaders such as Ring, Glossier, and Rent the Runway, Kustomer provides businesses with a full view of every customer by unifying all relevant data, interaction history, apps, and systems. Kustomer was founded in 2015 with headquarters in New York City.

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