Bengaluru: Recko, a fintech startup that enables artificial intelligence, or AI, powered reconciliation of digital transactions, said on Wednesday it has raised $1 million seed funding from Prime Venture Partners.
The fintech startup has built a software as a service (SaaS)-based reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organizations. Recko also announced it is at a run rate of reconciling a quarter billion transactions annually. In the first 12 months since launch, Recko claims to have reconciled transactions worth $2 billion and is looking to scale this 10 times over in the next year.
Digital payments in India are expected to more than double to $135.2 billion in 2023 from $64.8 billion this year. According to the Reserve Bank of India (RBI), the volume of digital payments is expected to hit 30 billion in 2019. There is a dire need for an independent third party transaction reconciliation layer to ensure timely settlements among various interacting parties. The reconciliation layer will ensure that businesses receive settlements in accordance with the agreed rate cards, payout cycles, and are able to track and report payment realization, refunds and chargebacks.
Founded in 2017 by serial entrepreneurs Saurya Prakash Sinha and Prashant Borde, Recko has recently started working with various banks, non-banking financial companies (NBFCs) and insurance companies and is running successful pilots with them. Recko's early customers comprise Grofers, Meesho and some of India’s top marketplaces across different industry sectors, the company said in a statement.
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 system through application programming interfaces (APIs) and helps the merchant track receivables and identify settlement discrepancies. It enables finance teams to ingest, enrich multiple data sources and reconcile millions of transactions in hours, instead of days, without writing a single line of code.
With this investment, Prime Venture Partners has invested in eight startups in the fintech sector, including Ezetap, Happay, KredX, MoneyTap, NiYO, AffordPlan and Perpule.