Bengaluru-based fintech startup Recko has raised $1 Mn seed funding from early stage investment firm Prime Venture Partners. With its AI-powered solution, this B2B startup enables merchants to reconcile their digital transactions and keep track of the complete transaction lifecycle.
“We see the current settlements and reconciliation process as a massive inefficiency in the payment lifecycle across industries such as banking, lending, insurance, telecom, e-commerce etc. We are geared to scale our current transactions reconciliation volumes by ten times in the next year,” said Saurya Prakash Sinha, cofounder and CEO of Recko.
Recko was founded by serial entrepreneurs Sinha and Prashant Borde in 2017. The company enables organisations to handle and monitor massive volumes of transactional data without the need of any coding skills along with ensuring that the money is flowing between the right beneficiaries, with right deductions and in the right time.
In the one year of its launch, the company claims to have achieved a current run rate of reconciling a quarter billion transactions annually, with the total worth of reconciled transactions till now amounting to $2 Bn.
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Some of the company early clients include hyperlocal grocery delivery startup Grofers, Facebook-backed social re-commerce company Meesho among others. The company also claimed to be running successful pilots with various banks, NBFCs and insurance companies.
Recko: Reducing Manpower Investment By 50-80%
According to the company, in the existing process of reconciliation is tedious, error prone and time consuming with thousands of staff accountants and analysts across the world depending on manual record keeping to compare data that is spread across multiple sources, months, and systems.
“Most companies often set aside a certain revenue error percentage to account for reconciliation write-offs because they can’t trace an error back to the source,” the company added.
Recko addresses this gap by automating the reconciliation process and allowing the transaction data to be traced throughout its entire lifecycle. It is able to do so by connecting with the payment gateways, banks and merchant’s order management system through APIs and thus, help the merchant in tracking receivables and identifying settlement discrepancies.
With its AI-powered software, Recko claims that the product can help companies reduce their reconciliation manpower by 50 – 80%.
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.