News
The Gist
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Series B funding. $30M raised to accelerate AI product development.
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AI-enhanced CX tools. New platform features boost productivity and automate support workflows.
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Enterprise impact. CX leaders gain scalable AI solutions for complex service needs.
Kustomer announced a $30 million Series B funding round on Aug. 7. The investment was led by Norwest, with participation from Battery Ventures, Redpoint Ventures and Boldstart Ventures.
According to company officials, the capital will accelerate Kustomer's AI product roadmap and platform development as the company scales to meet growing demand for its customer experience solutions. The funding also coincides with the appointment of Anna Fisher as chief marketing officer.
Table of Contents
- Impacted Audiences for Kustomer's AI Platform
- Market Context: Customer Service at a Crossroads
- Operationalizing AI for Real-World Impact
- AI-Native Platform Capabilities
- Kustomer Background
Impacted Audiences for Kustomer's AI Platform
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Customer service leaders seeking to modernize support operations
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Mid-sized to large enterprises with high volumes of customer interactions
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Ecommerce and direct-to-consumer businesses with complex support needs
Market Context: Customer Service at a Crossroads
Customer service is undergoing a fundamental transformation as businesses seek the optimal balance between AI efficiency and human expertise in an increasingly complex service landscape.
Kustomer, a New York-based customer experience platform provider, has positioned itself in this evolving market with AI-native solutions. The company's $30 million Series B funding today comes as research shows 81% of businesses have implemented AI in contact centers, though success depends on balancing technology with human elements.
While AI excels at handling routine inquiries and enabling self-service, industry reports indicate it still struggles with nuance and complex reasoning. This limitation is reshaping agent roles, as AI increasingly manages standard interactions while human agents must handle more sophisticated customer needs requiring emotional intelligence and advanced problem-solving skills.
The CRM landscape reflects this shift, with platforms evolving from static record-keeping to dynamic engagement systems that deliver personalized experiences. Companies now require unified customer data from multiple touchpoints to gain comprehensive insights.
For customer service leaders, the challenge lies in developing training approaches that prepare agents for an environment where every human interaction represents a critical moment in the customer relationship.
Operationalizing AI for Real-World Impact
AI alone isn't enough. It has to reach customers and be embedded into the daily workflows of CX teams. That's what sets Kustomer apart. We've shaped our platform from the ground up to operationalize AI with real-time data and deep context, so teams can delight customers and drive real outcomes. With Norwest's partnership, we're doubling down on our AI-native platform and scaling to meet global enterprise demand.
— Brad Birnbaum, CEO and co-founder of Kustomer
AI-Native Platform Capabilities
According to Kustomer, its platform combines real-time data, contextual understanding and decision-ready infrastructure.
| Capability | Description |
|---|---|
| AI Agents for Reps | Intelligent copilots that draft responses and surface data, which the company claims make agents 30% more productive. |
| AI Agents for Customers | Solutions that reportedly resolve up to 40% of inquiries across chat, email, voice and WhatsApp. |
| System Integration | Connects with backend systems like ERPs and CRMs to update records and complete workflows. |
| Unified Timeline | Shared view allowing AI agents to work together within live support workflows. |
| International Support | Localized support and tailored solutions for global customer needs. |
Kustomer Background
Founded in 2015 in New York, the company provides a customer service platform primarily for enterprise and mid-market organizations, especially those in retail and ecommerce sectors. It was previously owned by Meta Platforms before being spun out as an independent entity.
Platform Capabilities
The company offers an omnichannel customer service solution that includes customer relationship management (CRM), AI-driven automation and workflow tools. Its platform integrates with messaging channels such as email, chat and social media, aiming to centralize customer interactions. Users can leverage analytics and automation to improve response times and personalize support. The platform also supports integration with other business tools commonly used in customer service environments.
Market Position
The company serves organizations seeking to modernize customer support operations and unify customer data across channels. Its typical customers include mid-sized to large enterprises, particularly those with high volumes of customer interactions. The platform is positioned as an alternative to legacy ticketing systems, appealing to businesses prioritizing omnichannel engagement and automation. Its client base is concentrated in industries with direct-to-consumer models and complex support needs.
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