The New York-based start-up had raised roughly $170 million in a private funding round.
(Photo: AFP)
Facebook has acquired Kustomer, a customer relationship management start-up, to for an amount of $1 billion, reports stated on Monday.
The New York-based start-up had raised roughly $170 million in a private funding round.
The deal is likely to provide businesses and customers more support for interactions on Facebook-owned social media platforms like Instagram, WhatsApp and Facebook Messenger. The deal is currently subject to regulatory approval.
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“Facebook eventually expects to host Kustomer data on secure Facebook infrastructure,” said Dan Levy, VP of Ads and Business Products, Facebook.
While Facebook will not automatically use Kustomer data to inform the ads that a user sees, businesses will have the option to use their data at Kustomer for their own marketing purposes, which may include separate advertising services on Facebook.
“Our goal with Kustomer is simple: to give businesses access to best-in-class tools that deliver excellent service and support,” said Matt Idema, COO, WhatsApp.
Some 50 million businesses and 175 million people message a WhatsApp Business account every day. This number is growing because interaction with the customers gives an extra edge to businesses, resulting in improved sales.
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