The startup will use the funds to expand its sales and technology teams while accelerating product development and data capabilities.
“We invested in Recko because of the team’s first-hand experience in addressing a huge problem that every company has and one that will grow by orders of magnitude with digitisation. Reconciliation can only be solved by a neutral third party and has traditionally been handled via a brute-force approach of spreadsheets and a battery of analysts. Recko’s tech and AI-driven approach has been very well accepted in the industry. We’re delighted to see the progress and are grateful for the trust placed in them by marquee clients, in just their first year of operation,” Sanjay Swami, managing partner, Prime Venture Partners said.
Founded in 2017, by Prashant Borde and Saurya Prakash Singh, Recko is a SaaS-based reconciliation platform that helps finance teams of commerce marketplaces as well as transaction platforms to keep track of the complete transaction lifecycle and commercial contracts, to prevent pilferage.
Saurya said that multiple instruments, including wallet balance, vouchers, and others, are involved while making a payment during checkout at an online marketplace. The finance team, while reconciling data, also needs to keep in mind things such as product returns and payment settlements.
This is where Recko comes into play, helping finance teams reconcile data relating to payments against orders, while settling it with other stakeholders.
In the first 12 months since launch, Recko has reconciled transactions worth $2 billion, and is looking to scale this by 10x in the next year.
“Prashant and I saw the limitation of Excels and manual reconciliation processes as we scaled Flipkart, Grofers, and Reliance Jio. Hiring more people to ensure standardised and accurate reconciliation process did not solve the problem. We see the current settlements and reconciliation process as a massive inefficiency in the payment lifecycle across industries such as banking, lending, insurance, telecom, ecommerce etc,” Saurya further added.
Its early customers include Grofers, Meesho, and other Indian marketplaces across different industry sectors. The company at present has eight to 10 clients. The startup has recently also started working with various banks, NBFCs, and insurance companies.