Today, Kustomer announced their Series B raise of $26 million from investors including Redpoint and Cisco. Our fund Social Leverage was a seed investor and continued to invest in this round. Here is Techcrunch with a good explanation of the round and the business.
Redpoint led the round and Tom Tunguz of Redpoint summed up the product and investment reasons below:
Kustomer is the software I wish I had when supporting customers. Brad, Jeremy and the rest of the Kustomer team have operated in the space for more than a decade. They were founders of Assistly (with our partner Alex Bard), and became executives at Salesforce’s Service Cloud after Salesforce bought their business.
They have seen companies of all types and sizes struggle to find the right way to support their customers. The product of all that experience and knowledge is Kustomer.
Kustomer has a flexible data model to ingest all relevant data to a customer interaction, from web visits to mobile interactions, from transactions to event attendance.
Kustomer couples this data store to a powerful process engine that enables orchestration and automation of other systems. For example, customer support reps can process a return and create a new order at the click of a button.
This is a powerful combination. It’s the reason companies like Ring, Slice, Glossier, SmugMug and others trust their most important relationships – those with their customers – to Kustomer.
When we invested in Kustomer in 2015, Zendesk ($ZEN) was a $2 billion company and a stock I wanted to own. Despite Kustomer eventually competing with them, I knew that owning Zendesk was a great public proxy for owning the growth ahead for the sector and industry. Today the stock has more than doubled and is worth $6.1 billion.
I last covered Kustomer back in early 2017. It is amazing to see the growth in the team, the product and sales. Thankfully we have been right about the growth in Ecommerce as well.
Congrats to my partner Gary who has led the investment on our behalf and to Brad and the fast growing team at Kustomer.
Please hit me up if you think Kustomer can help your company or you know the Director of Support or Customer Experience at high growth Business to Consumer companies.
Also published on Medium.