Bengaluru-based Recko, which provides payment reconciliation services to companies, has raised $1 million in a seed round from early-stage venture capital fund Prime Venture Partners.
The two-year old company intends to use the fresh funds to strengthen the product, expand the scope of offerings and build a strong technology and marketing team.
Founded by college batchmates Saurya Prakash Sinha and Prashant Border, Recko has built a platform which tracks the complete transaction lifecycle and commercial contracts for organisations. It helps companies who go through multiple legs of payments and transactions during its regular operations to keep track of all the payments received and reconcile them.
Over the last 12 months, Recko has started working with e-commerce players like Grofers and Meesho and has reached a run rate of 250 million reconciliation transactions every year. Having already reconciled transactions worth $2 billion they have set a target of growing it ten times over the next year.
“We started in May 2017, spent the first six to seven months developing the product and then went out to test in the market,” said Sinha, chief executive officer, Recko. “We have started with tech and internet companies but will expand our client base eventually.”
With a product like Recko businesses will be able to ensure timely settlements in accordance with the rates they have decided with multiple payment processors, payout cycles and will be able to track which payments have come in and which refunds or chargebacks have gone out in a time bound manner. This will make life easier for the finance teams since they can track fund flow digitally now.
“The opportunity here runs into hundreds of crore, because most businesses find it difficult to reconcile at the end of their own financial cycles mainly due to the complexities involved, in most cases reconciliation issues are written off which in turn needs to be checked by the auditors,” said Sanjay Swamy, managing partner, Prime Venture Partners.
The company has already started receiving inbound interest from banks and insurance companies. Overall the target sectors for Recko are e-commerce, transportation, insurance, food tech among others.
“We will charge on the basis of volumes generated by the companies and obviously go for customised pricing since different companies will have different requirements,” said Sinha.