On Monday, Facebook announced buying a customer relationship management start-up, Kustomer. The deal was expected for more than $1 billion.
This is for the first time that Facebook is buying a business-software company such as Kustomer. Previously, Facebook has focused on buying customer-oriented company like gif catalogue company, Giphy in May. It has also bought Spanish cloud video gaming company PlayGiga in last year’s December.
Kustomer can help Facebook to provide small businesses with a space to advertise and sell goods with features such as sales through the social network’s services. It will create a vicious circle where these businesses will spend more on Facebook advertisements. Facebook is known for earning 99 percent of its revenue through advertisement.
Kustomer was founded in 2015 in New York and since then it has raised tentatively $173.5 million, according to Crunchbase. JP Morgan was the only advisor to Kustomer in the deal.
