Enterprise fintech firm Recko banks $6m in Vertex-led round

Bengaluru-based Recko, a startup that enables AI-powered reconciliation of digital transactions, said it has raised US$6 million in a series A funding round led by Vertex Ventures SEA and India.

The round also saw participation from existing investor Prime Venture Partners, according to a statement. The early-stage VC firm first invested in Recko in June last year with US$1 million in seed funding.

Recko CEO Saurya Prakash Sinha (left) and chief technology officer Prashant Border / Photo credit: Recko

Founded in 2017, Recko offers a software-as-a-service product that helps organizations keep track of complete transaction life cycles and commercial contracts. It automates the reconciliation process and allows data to be traced by getting connected to payment gateways, banks, and merchants’ order management systems.

Recko said it now looks to invest further into product development and bolster its leadership team. It also plans to expand its presence outside of India, with a goal of reconciling transactions worth US$10 billion by the end of the year. It claims to have reconciled transactions worth US$5 billion to date since it launched.

Citing an Assocham-PwC study, Recko said that India is currently experiencing a rise in online transactions. Digital payments in the country are expected to more than double to US$135.2 billion in 2023 from US$64.8 billion in 2019.

“Transaction reconciliation is not a new problem, but the nature and extent of this problem has changed due to rapid digitization of transactions […],” said Recko co-founder and CEO Prakash Sinha. “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.”

Recko’s clients include online grocer Grofers, social commerce platform Meesho, and delivery firm Dunzo. It said it has also started working with various financial institutions such as banks and insurance companies in the country.