Bengaluru, April 2, 2020: Recko, an enterprise fintech startup that enables AI-powered reconciliation of digital transactions, has raised $6 million in Series A funding. The investment was led by Vertex Ventures SEA and India, and saw participation from existing investor Prime Venture Partners. The fresh funding will be used for further product development, hiring and expanding its presence outside India . Since it was founded in 2017, Recko has reconciled transactions worth USD 5 Billion.
The fintech startup has built a SaaS-based financial reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organizations. Its customers include Grofers, Meesho, Dunzo and some of India’s top marketplaces across different industry sectors. As a testament to its growth and popularity among businesses across India, Recko is looking to reconcile transactions worth USD 10 Billion by the end of 2020.
India is witnessing a continued surge in the number of digital transactions and many enterprises, banks and financial institutions are finding it difficult to keep track of the money flowing across the organization. Digital payments in India are expected to more than double to $135.2 billion in 2023 from $64.8 billion in 2019. There is an immediate need for an independent third party transaction reconciliation layer to ensure timely settlements among various interacting parties. The reconciliation layer will ensure that the businesses receive settlements in accordance with the agreed rate cards, settlement cycles, and are able to track and report payment realization, refunds and chargebacks.
Recko automates reconciliation and allows the data to be traced throughout the entire transaction cycle. It does so by getting connected to payment gateways, banks and merchant’s order management systems through APIs and helps the merchant in tracking receivables and identifying settlement discrepancies. It enables finance teams to ingest, and enrich multiple data sources and reconcile millions of transactions in hours, instead of days, without writing a single line of code. Recko reduces manpower by 50 – 80% and keeps an impeccable watch over the transactions to ensure money moves between the right parties, at the right time with correct deductions. Recko is now crunching massive volumes of transactional data to digitise organizational financial control and is building Machine Learning models to identify anomalies, risk and intelligence around money flow.
Founded in 2017 by serial entrepreneurs Saurya Prakash Sinha and Prashant Borde, Recko has recently started working with various Banks, NBFCs and Insurance companies and is currently running successful pilots with them.
Saurya Prakash Sinha, CEO & cofounder, Recko
“Transaction reconciliation is not a new problem but the nature and extent of this problem has changed due to rapid digitization of transactions and massive count of B2C transactions especially in internet companies. Over the time we have evolved to add COD, Logistics and Aggregator reconciliation to make it a complete Receivables suite. Right now it is a great time for companies to put systems in place to get ready for the growth when the markets open up. As we move forward we intend to build a solid financial platform on which fast growing tech businesses can be built. We are delighted to partner with Piyush and Ben in building Recko together.
Piyush Kharbanda, Partner, Vertex Ventures- Southeast Asia and India
At Vertex, we have had a privileged vantage point and witnessed growth of some great software platforms solving deep enterprise problems. Like several others before it, we believe that the CFO function will see high quality platforms driving disruption in the way processes such as reconciliation are managed, and high-quality software, along the lines of what Recko is developing will make complex problems look trivial. Saurya, Prashant and the entire Recko team are looking to solve a fairly large problem with a world class platform. We are excited to partner with the team and look forward to making reconciliation excel sheets redundant.”
Sanjay Swamy, Managing Partner, Prime Venture Partners
“Recko is solving a very complex problem for the finance teams who are dealing with complexity and a good amount of transactional volumes on a daily basis. This is an area that hasn’t seen much innovation in the Indian technology ecosystem, despite the massive addressable market. Our decision to invest in Recko aligns with our strength and success in financial services. Recko will further accelerate reconciliation of digital transactions using AI that will enable better experiences and provide greater value to companies going forward.”
Recko enables AI-powered reconciliation of digital transactions & keeps track of the complete transaction lifecycle for organizations. Founded by serial entrepreneurs Saurya Prakash Sinha and Prashant Borde, Recko is building products which enable organizations to handle and monitor massive volumes of transactional data without writing a single line of code and ensure money is flowing between the right beneficiaries, with right deductions and in the right time.
For more information, please visit: https://www.recko.io