Bengaluru-based fintech firm Recko, a startup that enables AI-powered reconciliation of digital transactions has raised US$6 million in a series A funding round led by Vertex Ventures SEA and India.
The other investors that participated in the round were 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 further plans to invest 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, "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."
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.
Recko co-founder and CEO Prakash Sinha said, “Transaction reconciliation is not a new problem, but the nature and extent of this problem has changed due to rapid digitization of transactions. 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.”
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.