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 says it 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 organisations. 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.
Saurya Prakash Sinha, CEO & cofounder, Recko, said, “Transaction reconciliation is not a new problem but the nature and extent of this problem has changed due to rapid digitisation of transactions and massive count of B2C transactions especially in internet companies. Over 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 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.”
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 organisation. 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 realisation, 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 organisational 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.