Home / SmartTech / Kustomer Raises $ 60 Million for its Omni-Channel Based CRM Platform – TechCrunch

Kustomer Raises $ 60 Million for its Omni-Channel Based CRM Platform – TechCrunch

Kustomer, a CRM startup that can compete with Zendesk, Salesforce, and many other larger and older vendors, has closed another round of financing – no less than the year's third fundraiser for its new approach to customer management in today's digital environment World.

The New York-based company has raised an additional $ 60 million, a Series E led by the new Investor Coatue, which brings together existing investors Tiger Global Management and Battery Ventures. Other investors include Redpoint Ventures, Cisco Investments, Canaan Partners, Boldstart Ventures, and Social Leverage.

CEO Brad Birnbaum, who co-founded the company with Jeremy Suriel (both working in various locations, including airtime), Salesforce, and AOL), said the rating was now "definitely over $ 500 million," declined it does not, however, to be more specific.

The New York-based company was in a growth phase, bringing more than $ 1

61 million to 18 months in the past few years ($ 35 million increase and $ 40 million increase, respectively) 2019 rounds), and since its inception in 2015, a total of $ 173.5 million in third-party funding has been raised.

"We're All Outperforming We invest quickly in our business," Birnbaum said of the recent round of funding rounds. One focus of the company will be to invest more in R & D and product development, and to use the funding to open its first European office in the first quarter of next year.

Kustomer is working with a variety of retailers to boost its business with the proliferation of direct-to-consumer brands that need to build their own customer service by abandoning the traditional retail channel. Current customers in this category are who-is-who customers of some of the most successful in the broader D2C trend: Glossier, Ring, ThirdLove, Rent the Runway, Sweetgreen, Glovo, Away and UNTUCKit.

Birnbaum said Kustomer has worked with government agencies, B2B companies and Fortune 50 companies, "a rather diverse group".

Companies such as Zendesk and Salesforce built their businesses on the concept of truly useful tools that customer service representatives essentially work traditionally in environments where phone, email, and possibly web-based chat made up the bulk of inbound customer contact.

But in the grand tradition of building something new from scratch that reflects consumers' new digital pattern, rather than trying to do so, Kustomer has taken a different approach with an omnichannel concept to bring older products up to date bring dia-channels, messaging apps or – yes – phone, email and website chat, and bring them into a single customer view.

This is unlike much in the market today, where different channels achieve different results tickets, status and resolutions.

"W We are the only company that conducts omnichannel conversations that allow you to engage with clients in each channel you support," he said. " Doing that in a single thread sounds obvious, but I'd challenge you to find others who do the same as us."

A new version of the CRM platform, which will soon be coming out, says Kustomer will dig deeper into what he calls "RPA-like" business process automation. These are not just basic business rules based on keywords, but a set of algorithms that understand what a customer is asking for and perform a set of everyday but routine tasks that account managers must perform on a regular basis another size. It bundles these and other AI-based functions in a technology set called KustomerIQ.

"AI is a big focus for us," he said.

While Kustomer has been collecting a lot of money lately, there was another reason why the startup chose more: the investor himself.

Birnbaum describes Coatue as "one of the most modern and productive investors, and with it I mean not the money, but their network and their people The idea is that Coatue Kustomer will open many launches and doors as its scale progressively scales.

"Kustomer's differentiated omnichannel approach fundamentally changes the industry standard as customer service trends continue to shift and change. Consumers increasingly want personalized interactions with brands," said Coatue co-founder Thomas Laffont, who is now on the startup's board. "We look forward to working with Brad and his team as they continue to execute their strategic growth plan."

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