San Francisco-based technology company Stripe has acquired Bengaluru-based Recko which provides payments reconciliation software for internet businesses. This will be Stripe’s first acquisition in India.
The Bengaluru-based fintech startup provides a comprehensive and robust technology stack to manage financial data and enable financial workflows such as reconciliation, commission calculation, payout creation, and reporting, for businesses to track, manage and account money end to end.
Payments reconciliation is an accounting process that compares two or more sets of records. In a statement, Stripe said the addition of Recko to its portfolio will provide businesses on Stripe with a comprehensive way to track their financial health.
Stripe, however, did not reveal the transaction value of the deal. The acquisition is subject to customary closing conditions.
Will Gaybrick, Stripe’s Chief Product Officer, said, “Stripe helps millions of businesses around the world streamline their revenue management, from subscriptions and invoicing to revenue recognition and bookkeeping. With Recko, we’ll automate their payments reconciliation, a critical input into their overall financial health.”
The acquisition will help Stripe expand beyond its core offering of payments acceptance and will also add to its products which currently include Stripe Revenue Recognition, Stripe Billing, Stripe Invoicing among others.
Recko’s team will be joining Stripe’s remote engineering hub, helping to build and scale Stripe’s products globally. In recent times, Stripe has also increased its investments in India, including updated data locality architecture and rapid local hiring, the company said.
Founded in 2017, Recko counts internet businesses including Deliveroo, Meesho, PharmEasy, and more as customers.
So far, Recko has raised $7 Mn in three funding rounds, the latest being a $6 Mn Series A round raised in April last year. The fintech startup counts Vertex Ventures, Prime Venture Partners, amongst its investors.
The acquisition is a major development for India’s fintech market which is currently one of the fastest-growing compared to the rest of the world. Despite the first two waves of the Covid-19 pandemic that wreaked havoc across most sectors, the innovations brought about in the fintech space have helped India maintain a cutting edge.
Globally, the country has the highest fintech adoption rate at 87% against a global average of 64%.