Recko SaaS, a fintech-based startup company, has managed to secure $6 million in a Series A partnership contract led by one of the most prime venture capital firms, Vertex Ventures SEA and India. Their current investor, Prime Venture Partners, also threw their hat into the ring for the Series A round.
Recko was founded back in 2017 by two budding entrepreneurs, Saurya Prakash Sinha and Prashant Borde. The company is known for its dedicated software which can be used by e-commerce businesses as a service-centric financial propitiation resource to track transaction details, receipts and contracts secured with other businesses. It has implemented AI as a monitor for financial reconciliations.
Since their inception, they have reconciled transactions worth $5 million. Their clientele includes the likes of Grofers, Meesho, Dunzo and other leading startup e-commerce firms. Recko's growth has already been projected to $10 billion worth of financial reconciliation by the end of 2020.
Recko now faces the test of building upon the faith of the investors and making its worth known. With a substantial increase in the target figure as well as a fund replenishment, the company has already made plans to restructure its administration team.
Why did they invest in Recko?
Statistics and projected growth levels of digital transactions in India continue to tempt investors to bet big on startup companies showing good progress. Recko quoted that digital transactions in India are expected to shoot from $64.8 billion in 2019 to $135.2 billion in 2023. Keeping these figures in mind, the company is aiming to steam ahead and profit from these figures.
Recko SaaS implements AI for financial reconciliation and uses a carefully woven network which can be used to track payments, transaction life cycles. It connects itself to payment gateways and customer's order management systems with the help of APIs (Application-product interfaces). This, in turn, helps the company as well as the customer to track their products or settle transaction discrepancies. This is an essential tool that helps e-commerce firms maintain their transparency.
In simple terms, Recko acts as a financial dispute-arbitrator between the firm and the customer. Vertex Ventures SEA and India have high hopes with Recko. They were impressed with the platform's ability to provide a high-quality tool to firms who were having trouble settling financial discrepancies to their ever-increasing customer base.
AI platform, accurately monitors transactions and allows the data to be cycled back whenever it is needed. It claims that its platform can reduce manpower by 50-80 per cent. Recko was originally developed to be an additional reconciliation tool. However, due to the tool's efficiency, its clientele demanded a diversification of their application that would also take into account aggravators and cash-on-delivery receipts.
Recko plans to be a part of digital transaction reconciliations on behalf of its client firms worth $10 million by the end of 2020 as opposed to their total reconciliation worth $5 million over the years since its inception. The company also has plans to diversify its clientele and associate itself with the mainstream financial sector- banks, financial holdings and insurance companies.
In a world where complexity in managing finances is ever-growing, firms like Recko are helping firms to handle huge transaction volumes with ease. The company is addressing a long-unresolved issue despite significant advances in the Indian technology community.
Recko is also eyeing expansion beyond India. They have already brought in clients from the US and have implemented pilots for projects across South-east Asia.
Recko's achievement goes on to prove that fintech startups continue to be the racehorses on whom leading investors are betting big. With E-commerce in India being projected as the cash cow, innovative solutions like Recko's AI transaction reconciliation platform can ultimately lead to rich dividends.
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