Meta is seeking to sell Kustomer, the CRM vendor it acquired for a reported $1BN in February 2022.
While Meta initiated the deal in 2020, it took over a year to pass through regulatory scrutiny.
At the time, many considered the move a significant enabler in bringing WhatsApp and Messenger to customer service environments.
However, Meta has since announced integrations with a whole host of rival CRM vendors – most recently Hubspot – leaving some to question the deal’s value proposition.
On top of this, reports suggest that Kustomer’s revenue growth curve flattened last year – despite the high-profile acquisition – with one suggesting the vendor burned through $200MN.
Such expenditure includes operational and one-time expenses.
As quoted by The Wall Street Journal, a Meta spokesperson stated:
In light of Meta’s efficiency efforts, we’ve made the decision to focus on our fastest-growing business messaging offerings, including the monetization opportunity for WhatsApp.
The opportunity is likely to include adding features to WhatsApp that allow consumers to search for, message, and buy from businesses natively on the platform.
Indeed, Meta has already released such capabilities in Brazil.
A CRM solution could help businesses support these new commerce journeys and store customer experience data from them.
Yet, the solution does not have to be a first-party CRM. Meta could work with other leaders in the space to bring this vision to life.
Recognizing this, Meta seems content to work with third parties and shift back to its core business.
