November 2, 2011, 2:48 PM

Customer service ratings provider StellaService raises $5 million

Online retailers such as Zappos.com and 1-800-Flowers display the Stella seal.

Thad Rueter

Senior Editor

Lead Photo

StellaService, which provides customer service ratings to online retailers, said today it had raised $5 million in a funding round. StellaService will use the capital to hire employees, develop products and generally increase it business.

StellaService, founded in 2009, says it operates a nationwide network of mystery shoppers who review e-commerce sites. The company also publishes research related to customer service. StellaService says it previously raised $2 million in a seed round, and that its retail client base has increased by a factor of ten since April.

Retailers that achieve a high level of service earn a seal to display on their web sites; 50% of evaluated sites earn the seal, StellaService says. Such retailers as Zappos.com and 1-800-Flowers.com Inc. display the seal. 1-800-Flowers is No. 45 in the Internet Retailer Top 500 Guide; Zappos.com is owned by Amazon.com Inc., No. 1.

”Our mission is simply to create a world with better customer service,” said Jordy Leiser, co-founder and CEO. “We believe we’ve only just begun, and our rapid growth the last few months is a testament to the number of people and companies who share in our vision.”

Battery Ventures, which took part in the seed funding, led the recent investment. Previous investors DFJ Gotham Ventures and RRE Ventures also took part, as did new investor Forerunner Ventures.

“Jordy and the Stella team have really kicked the business into high gear since our initial seed investment, so supporting them in the Series A was an easy choice,” says Battery Ventures general partner Neeraj Agrawal. “Customer service is a critical component to e-commerce businesses being successful today, and as online retailers feel increased pressure to differentiate, StellaService has the opportunity to become the de facto standard in top notch customer service.”

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