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Indian FinTech Recko raises $6 mn in Series A led from Vertex, Prime Ventures

Saurya Prakash

Indian FinTech start-up  Recko has raised $6 million in Series A funding from a clutch of investors led by Vertex Ventures SEA and existing investor Prime Venture Partners.  Founded in 2017, the Bengaluru-based start-up enables AI-powered reconciliation of digital transaction plans, and it plans to use the funds for product development, hiring, and global expansion.

The company’s SaaS-based financial reconciliation product keeps track of the complete transaction lifecycle and commercial contracts for organizations. It plans to reconcile transactions worth $10 billion by the end of 2020, double the amount that it has reconciled so far.

Saurya Prakash Sinha, CEO, and Co-founder, Recko, said in a statement, “Transaction reconciliation is not a new problem but the nature and extent of this problem have changed due to rapid digitization of transactions and massive count of B2C transactions especially in internet companies. Over 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.”

With a surge in digital transactions, several enterprises, banks, and financial institutions are finding it difficult to keep track of the money flowing across the organization. Digital payments in India are expected to more than double at $135.2 billion in 2023 from $64.8 billion in 2019. Hence, there is an immediate need for an independent third party transaction reconciliation layer to ensure timely settlements among various interacting parties.

The reconciliation layer ensures that the businesses receive settlements following the agreed rate cards, settlement cycles, and can track and report payment realization, refunds, and chargebacks.

Recko automates reconciliation and allows the data to be traced throughout the entire transaction cycle by getting connected to payment gateways, banks, and merchant’s order management systems through APIs. It also helps the merchant in tracking receivables and identifying settlement discrepancies. It enables finance teams to ingest, and enrich multiple data sources and reconcile millions of transactions in hours, instead of days, without writing a single line of code.

By reducing the use of the workforce by almost 80%, Recko ensures money moves between the right parties at the right time with correct deductions. It is also crunching massive volumes of transactional data to digitize organizational financial control and is building Machine Learning models to identify anomalies, risk, and intelligence around money flow.

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