[Funding alert]: Recko raises $6M in Series A round led by Vertex Ventures, with participation from Prime VP
Recko, the enterprise fintech startup, has raised $6 million Series A funding led by Vertex Ventures Southeast Asia and India. The round also saw participation from existing investor Prime Venture Partners. The funding will be used towards hiring, product development, and expanding its presence outside India.
Founded in 2017 by serial entrepreneurs Prashant Border and Saurya Prakash Sinha, the platform enables AI-powered reconciliation of digital transactions. It has recently started working with banks, NBFCs, and insurance companies, and is running pilots with them. The team claims to have reconciled transactions worth $5 billion, and is looking to reconcile transactions worth $10 billion by the end of this year.
Saurya Prakash Sinha, CEO and Co-founder, Recko, said in a press statement,
“Transaction reconciliation is not a new problem but the nature and extent of this problem has changed due to rapid digitisation of transactions and massive count of B2C transactions, especially in internet companies. Over the time we have evolved to add COD, logistics, and aggregator reconciliation to make it a complete receivables suite. Right now it is a great time for companies to put systems in place to get ready for the growth when the markets open up."
The SaaS-based financial reconciliation product keeps track of the transaction lifecycle and commercial contracts for organisations. Some of its clients include - Dunzo, Grofers, and Meesho.
Recko automates reconciliation and allows the data to be traced throughout the entire transaction cycle. The platform connects to payment gateways, banks, and the merchant's order management systems through APIs.
This helps the merchants track receivables and identify any settlement discrepancies.
The platform helps finance teams to understand and analyse multiple data sources. It helps reconcile millions of transactions within hours without writing a single line of code.
Piyush Kharbanda, Partner, Vertex Ventures, Southeast Asia and India, said: "At Vertex, we have had a privileged vantage point and witnessed growth of some great software platforms solving deep enterprise problems. Like several others before it, we believe that the CFO function will see high quality platforms driving disruption in the way processes such as reconciliation are managed, and high-quality software, along the lines of what Recko is developing will make complex problems look trivial. Saurya, Prashant and the entire Recko team are looking to solve a fairly large problem with a world class platform. We are excited to partner with the team and look forward to making reconciliation excel sheets redundant.”
The team claims the platform reduces manpower by 50 to 80 percent, and watches over transactions to ensure the money moves between the right parties at the right time. The platform crunches large volumes of transactional data to digitise organisational financial control, and is building Machine Learning models to identify anomalies, risk and intelligence around money flow.
Sanjay Swamy, Managing Partner, Prime Venture Partners, said in a statement, “Recko is solving a very complex problem for the finance teams dealing with complexity and a good amount of transactional volumes on a daily basis. This is an area that hasn’t seen much innovation in the Indian technology ecosystem, despite the massive addressable market. Our decision to invest in Recko aligns with our strength and success in financial services. Recko will further accelerate reconciliation of digital transactions using AI that will enable better experiences and provide greater value to companies going forward.”
(Edited by Megha Reddy)