Facebook Acquires Customer Service Startup Kustomer For $1B
The social media giant Facebook said on Monday it would buy customer service startup Kustomer, as the world’s largest social network adds tools to attract more sellers to its platforms.
Kustomer allows businesses to aggregate customer conversations from multiple channels into a single-screen, and also to automate some of the responses to prospective buyers. The New York-based firm already has its services integrated on Facebook Messenger and Instagram.
The Wall Street Journal, which first reported about a likely acquisition, said the transaction valued Kustomer at $1 billion.
Facebook has doubled down on its e-commerce push, betting that it would help generate fresh ad revenue as user growth slows.
Earlier this year, it launched Shops, a service that allows businesses to display and sell products across Facebook’s platforms.
Facebook isn’t the only social media company making acquisitions to improve its customer service features. Earlier this month, Snap bought Voca.ai, a startup creating AI-based voice agents for call centers.