The investment was led by Vertex Ventures and saw participation from existing investor Prime Venture Partners. The fresh funding will be used for further product development, hiring, and expanding its presence outside India. Since it was founded in 2017, Recko has reconciled transactions worth USD 5 billion.
The fintech startup has built a SaaS-based financial reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organisations. Its customers include Grofers, Meesho, Dunzo, and some of India’s top marketplaces across different industry sectors.
India is witnessing a continued surge in the number of digital transactions and many enterprises, banks, and financial institutions are finding it difficult to keep track of the money flowing across the organisation. Digital payments in India are expected to more than double to USD 135.2 billion in 2023 from USD 64.8 billion in 2019. There is an immediate need for an independent third-party transaction reconciliation layer to ensure timely settlements among various interacting parties. The reconciliation layer will ensure that the businesses receive settlements in accordance with the agreed rate cards, settlement cycles, and are able to track and report payment realisation, refunds, and chargebacks.
Recko automates reconciliation and allows the data to be traced throughout the entire transaction cycle. It does so by getting connected to payment gateways, banks, and merchant’s order management systems through APIs – and helps the merchant in tracking receivables and identifying settlement discrepancies.