Twilio Buys Customer Data Company Segment For USD 3.2 Billion

The pandemic has not only forced the common people to change the way they think but has also compelled businesses to adopt new ways to interact with their customers. Most of the customers are now giving preference to digital platforms for their daily needs. To some extent, this is probably why Twilio Inc has purchased customer data company Segment for USD 3.2 billion. The move will benefit Twilio customers as they will now have access to valuable customer data. Twilio’s chief product officer Chee Chew has said that they have no intentions to move in the direction of customer experience. The statement holds significance as there was buzz that the company can try its luck in the customer experience sector.

Chew said that they are a customer engagement company and not a communications company as most of the public have thought. “ We always work about providing better ways to businesses for effective communication with their customers,” he added. Twilio has been benefited from the coronavirus induced lockdown as most of health care providers and retailers relied on software to fulfill the needs of their customers. While San Francisco-based startup Segment helps these companies in managing huge amounts of data they gather about their customers. In the last private funding round, the company was valued at USD 1.5 billion. Among the investors are Accel, Thrive Capital, and GV of Alphabet Inc.

The deal will keep the company in a better position to address the demand of USD 79 billion markets, Twilio said in a statement. The deal now places Twilio in direct competition with Adobe Inc and Salesforce. According to the statement, the Segment will not become a division of Twilio. The transaction is likely to be completed in the fourth quarter. The segment provides services to companies like International Business Machines Corp., Glossier Inc., Intuit Inc., and Atlassian Corp. The startup is led by chief executive officer Peter Reinhardt. Peter is also its co-founder.