Facebook Acquires Customer Relationship Management Startup, Kustomer

Facebook CEO Mark Zuckerberg [Photo/Courtesy]

Facebook has completed a deal to acquire customer relationship management start up, Kustomer.

Facebook did not disclose the value of the deal, but the WallStreet Journal placed the deal at a little over $1 billion. Kustomer is a New York Based start up that was founded in 2015.

Kustomer uses a software that creates a single screen interface for businesses to engage its customers online. It also allows for automated conversations using Chat bots.

The CRM tools will help Facebook manage interactions with customers through the phone, email, text or direct messages in specific apps including Whatsapp and Messenger.

Read: Facebook Looking To Integrate Messenger With Whatsapp

Facebook’s acquisition is a first for the giant tech company that has primarily invested heavily in social consumer-centric companies such as Giphy. The company tends to invest more in software that help to build up newer features for Facebook users.

However, with the acquisition of Kustomer, Facebook seems to be giving more attention to its e-commerce plans. The company recently started rolling out Shops. The feature will help Facebook users check out various product categories and shop directly on the platform.

By adding Kustomer into its portfolio, Facebook will be in a better position to help the small businesses that advertise and sell on the platform. With Customer care management tools available, businesses will spend more on Facebook advertising, which contributes to 99 percent of the company’s revenue.

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Written by Vanessa Murrey

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