Gorgias vs Kustomer

2023. Kustomer, the CRM startup acquired by Meta last year for $1B, spins out



Facebook has officially spun out Kustomer, the CRM startup it acquired last year for around $1 billion. The existence of potential buyers for Kustomer remains uncertain; however, Meta has opted to retain a minority stake in the CRM business. This allows Meta the flexibility to collaborate with Kustomer in further product development and continue servicing any clients acquired during Meta's ownership tenure. With the ongoing race in generative AI and the introduction of new innovations, both Meta and Kustomer have the potential to create and integrate intriguing tools across Meta's platforms. However, the extent of their existing collaborative business remains unclear. Initially, Kustomer aimed to revolutionize CRM by adopting an "omni-channel" approach to customer contact. According to Kustomer, traditional CRMs did not align with how modern consumers and potential customers interact with businesses today.


2020. Customer support startup Gorgias raises $25M



Ecommerce helpdesk startup Gorgias has successfully secured $25 million in Series B funding. With a current customer base of over 4,500 stores, including renowned brands like Steve Madden, Timbuk2, Fjällräven, Marine Layer, Ellana, Electrolux, and Sergio Tacchini, the company has witnessed a remarkable 200% revenue growth this year. Gorgias capitalizes on the shifting trend among brands, wherein they aim to directly sell to consumers rather than relying on intermediaries such as Amazon. An example of this shift is Nike's recent decision to withdraw its products from Amazon. By integrating with Shopify and utilizing AI technology and customer data, Gorgias automates responses to common queries like tracking numbers. This strategic approach enables customer service representatives to allocate their time more effectively, reducing the need to handle routine requests and ensuring faster responses for customers.


2020. Facebook buys Kustomer for $1B



Facebook has recently made the decision to acquire Kustomer, a startup that aimed to revolutionize the customer service industry by offering agents enhanced data and a comprehensive overview of users through the integration of various social media and communication channels. This acquisition aligns with Facebook's strategy of expanding its customer service offerings on the platform. The company plans to further strengthen its position by introducing an advanced platform that goes beyond existing capabilities, potentially as a paid service. As Facebook faces increasing competition from platforms like Snapchat and TikTok, having an enhanced product to offer businesses, in addition to its existing services, will enable Facebook to foster stronger ties within the Facebook ecosystem.


2020. Kustomer acquires Reply.ai to enhance chatbots on its customer service CRM



CRM startup Kustomer has announced its acquisition of Reply.ai, a Madrid-based startup. Reply.ai has developed a code-free platform that enables companies to create customized chatbots for efficient handling of customer service inquiries. These chatbots utilize machine learning to continuously improve their responses over time. Reply.ai's impressive client roster includes renowned brands such as Coca-Cola, Starbucks, Samsung, and several prominent retailers, ad agencies, and marketing agencies. By acquiring Reply.ai, Kustomer aims to challenge industry giants like Salesforce, Zendesk, and Oracle in the CRM space. Kustomer's platform empowers human agents to effectively manage inbound omnichannel customer requests, setting it apart as a comprehensive solution.