Bengaluru-based fintech startup Recko has raised $6 Mn in a fresh funding round led by Vertex Ventures. Recko cofounder Saurya Prakash Sinha said existing investor Prime Venture Partners also participated in the round.
Sinha told Inc42 that the funds will be used towards product development and building the leadership team. The company is looking to hire leaders across functions and is looking to enhance product capabilities.
Prior to this, Recko raised $1 Mn seed funding from Prime Venture Partners in June 2019. The company is also backed by angels such as Taavet Hinirikus (cofounder 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.
Founded in 2017 by Sinha and Prashant Borde, Recko is a SaaS-based reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organisations.
Sinha claims that the company has now reconciled transactions worth $5 Bn with customers such as Grofers, Meesho etc. The company aims to reconcile transactions worth $10 Bn by 2020 end.
Built around the idea of offering financial security to the companies such as ecommerce platforms, insurance providers and banks which typically have a high volume of transactions, Recko aims to automate the entire reconciliation process. Being an independent third-party transaction reconciliation layer, it ensures that each transaction is accounted for and all settlements can be done in a timely manner.
Recko is primarily using technology such as AI models for connecting the payment gateways, banks and merchant order management systems through APIs and helping businesses track receivables and identify settlement discrepancies. To further enhance the capabilities, Sinha told Recko plans to introduce intelligent analytics with its product suite.
The company is planning an expansion into the US market as well and has started a pilot project already. But considering the pandemic, it is slowing down expansion plans while continuing to focus on existing markets such as the Middle East and Southeast Asia. Sinha told us that the company is already running pilots in these countries and aims to do a full-fledge launch this month.
Globally the key players in payment reconciliation market are Autorek, Oracle Corporation, Treasury, Datalog, Cashbook, Adra Software (Trintech), ReconArt, Inc., Fiserv, Inc., among others.