Recko, a fintech startup that enables AI-powered reconciliation of digital transactions, has raised additional capital from a clutch of reputed global and Indian fintech angel investors. All the new investors have worked extensively in the payments and fintech sector, having built successful companies and world class products. Their investment and backing is a testament to Recko’s growth in the last six months. Recko has a run rate of reconciling a quarter billion transactions annually; in July alone, the company reconciled transactions worth $330 Million. The company is setting aggressive expansion targets and plans to enter international markets including the US, in the next six months.
The marquee investors include Taavet Hinirikus (Co-founder of Transferwise), Ashish Gupta (Managing Director, Helion Ventures), Vaibhav Puranik (Financial Product head for Carta), Shamir Karkal, (Founder of Sila Money), Eric Kwan (Early Facebook engineer and Founding engineer of Operator) and Locus Ventures. The follow-on funding round also saw participation from the company’s existing investor Prime Venture Partners. Recko had earlier raised $1 million seed funding from Prime.
Recko has built a SaaS-based reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organisations. In the first 12 months since launch, Recko has reconciled transactions worth $2 Billion with customers including Grofers, Meesho and some of India’s top marketplaces across different industry sectors.
Saurya Prakash Sinha, CEO & cofounder, Recko said, “While our initial customers are in India, our vision for Recko was always go global. Over the past few months, we have validated the demand for our solution around the world. Adding these amazing stalwarts on our side means Recko can reach out to for advice, product guidance, technology expertise, and connect to customers /investors from time to time.”
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 system through APIs and helps the merchant in tracking receivables and identifying settlement discrepancies. It enables finance teams to ingest, 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.
Digital payments in India are expected to more than double to $135.2 billion in 2023 from $64.8 billion this year. According to the RBI, the volume of digital payments is expected to hit $30 billion in 2019. There is a dire 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 are receiving settlements in accordance with the agreed rate cards, payout cycles, and are able to track and report payment realisation, refunds and chargebacks.
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.
Sanjay Swamy, managing partner, Prime Venture Partners said, “Recko is successfully solving exponentially a very complex problem that most companies are facing with digital transactions because of the volume and complexity. We are rapidly seeing newer and newer use cases for Recko, around the world. We are thrilled to welcome marquee co-investors and have the opportunity to contribute further to Recko’s journey in a significant way.”