Bengaluru-based Recko, a fintech startup that helps companies reconcile digital payments, has raised $6 million in its series A round of funding.
The round was led by Vertex Ventures Southeast Asia and India with participation from Prime Venture Partners that had put in a million dollar in its seed round.
“We will be using the funds mainly to strengthen our technology platform and create systems so that we can manage higher volumes,” Recko co-founder Saurya Prakash Sinha said.
Recko is a Software as a Service platform that uses artificial intelligence to help companies reconcile transactions and payments they receive across multiple channels. It manages the complete transaction lifecycle and commercial contracts for its customers.
“We will also invest in building a senior leadership team to manage different verticals,” Sinha said.
The company has a 36-member team and 24 of them are engineers. It is looking to expand it to 55 and also have a marketing team in place.
“Most of our current clients have joined us through referrals and inbound inquiries, we want to scale up our customer base now,” said Sinha.
He said the coronavirus outbreak had opened up new avenues for players like Recko. Many traditional companies were looking at investing in reconciliation software now that most of their teams were working remotely.
The startup has also started offering fraud and payment analytics solutions, thereby making the product more rounded. It is also taking steps to open operations in the United States, West Asia and Southeast Asia.
“We have already seen a 70 to 80% jump in revenue and we are keeping a close eye on all our investments. One good thing is that enterprise customers have the capacity to pay,” said Sinha.
Working with corporates like Grofers, Meesho and Dunzo, Recko has reconciled transactions worth $5 billion.
With more corporates digitising their payments stack, they would need reconciliation between their different payment modes, chargebacks, etc. This is where Recko sees more opportunities. It has set a target to reconcile transactions worth $10 billion by the end of 2020.
Recko was founded in 2017 by Sinha and Prashant Borde, both graduates of IIT-Gandhinagar. While Sinha has worked with PhonePe, Grofers and Flipkart, Borde was with Jio before they launched Recko.