Existing investor Prime Venture Partners also participated in this round
The company will use the funds for product development, hiring and to expand presence outside India
BENGALURU: Enterprise fintech startup Recko Software Pvt Ltd has raised $6 million in Series A funding, in a round led by Vertex Ventures - Southeast Asia and India.
Existing investor Prime Venture Partners also participated in this round. The Bengaluru-based company said it will use the funds for product development, hiring and to expand its presence outside India.
Recko said on Thursday it enables AI-powered reconciliation of digital transactions, and has reconciled transactions worth $5 billion, since it was founded in 2017.
Founded by Saurya Prakash Sinha and Prashant Borde, Recko recently started working with various banks, non-banking financial companies (NBFCs) and insurance companies.
The startup has built a software-as-a-service (SaaS)-based financial reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organisations. Its customers include companies such as Grofers, Meesho and Dunzo and other marketplaces across different sectors. Recko is looking to reconcile transactions worth $10 billion by the end of 2020, it said.
Recko said it is now crunching massive volumes of transactional data to digitise organisational financial control and building machine learning models to identify anomalies, risk and intelligence around money flow.
“Transaction reconciliation is not a new problem but the nature and extent of this problem has changed due to rapid digitization of transactions and massive count of business to consumer (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. As we move forward we intend to build a solid financial platform on which fast growing tech businesses can be built," Saurya Prakash Sinha, CEO and co-founder of Recko, 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," Piyush Kharbanda, partner, Vertex Ventures - Southeast Asia and India, said.
Sanjay Swamy, managing partner, Prime Venture Partners said, “Recko is solving a very complex problem for the finance teams who are 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. Recko will further accelerate reconciliation of digital transactions using AI that will enable better experiences and provide greater value to companies going forward."