Bengaluru-based fintech startup Recko has raised an undisclosed amount of fresh funding from marquee angel investors. This includes 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.
The follow-on funding round also saw participation from the company’s existing investor Prime Venture Partners. Prior to this round, Recko raised $1 Mn seed funding from Prime Venture Partners in June.
The company plans to use the funds towards expansion and plans to enter international markets including the US, in the next six months.
Founded in 2017 by Saurya Prakash Sinha and Prashant Borde, Recko as 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 claims to have reconciled transactions worth $2Bn with customers including Grofers, Meesho etc.
The company claims that it reconciled transactions worth $330 Mn in July itself. It claims to have 250 Mn transactions per year run rate.
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.”
The company connects with payment gateways, banks and merchant’s order management system through APIs and helps the merchant in tracking receivables and identifying settlement discrepancies. Recko now claims to crunch 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.
Saurya Prakash Sinha, CEO and 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.” Recko has recently started working with various Banks, NBFCs and Insurance companies and is currently running successful pilots with them.
The B2B market records an annual transaction value of more than $1 Tn. According to NITI Aayog’s ”Digital Payments (2018 edition)”, India’s digital payments industry is estimated to grow to $1 Tn by 2023. It also suggested that the value of digital payments will likely jump from the current 10% to over 25% by 2023.
The Indian fintech sector has been going through a transformation phase with the growing internet penetration and the wide adoption of UPI and other digital payment options.