Fintech startup Recordent has raised $400,000 in an Angel funding round from IIM Calcutta Innovation Park, the family office of Kantamaneni, and other investors from India and the US, the company said in a statement on Tuesday.
Recordent, launched in 2020, builds application programming interface (APIs) for accounting software systems. The company will use the funds for enhancing its technology and customer acquisition, and plans to develop solutions for small and medium enterprises (SMEs). The company will enable SMEs to conduct operations like know-your-customer (KYC), in a bid to protect transactions and relationships with customers, it said.
“The proceeds of the funding shall help us strengthen our platform by harnessing the latest in AI (artificial intelligence) and ML (machine learning) technologies, to improve the connected customer experience. The credit profiling blended with tech, represents the connected B2B (business-to-business) world enabling the businesses to rise together,” said Winny Patro, co-founder, Chief Executive Officer, Recordent. “We are focused on making business seamless and hassle-free for MSMEs; along with credit profiling, which in turn will help businesses to reduce their credit risks,” he added.
Recordent plans to collaborate with complementary fintech service providers and banks for providing financing options to businesses. The company is also looking to enable invoice reconciliation, and plans to add more services to its tech platform. It claims to be working with more than 50 SMEs, said the statement.
The company is ISO certified and claims to have over 11,000 businesses in the ecosystem. Recordent also claims to have cleared more than 50,000 customer dues, worth over Rs 2,500 crore, submitted by the members that are registered on its platform.
It plans to double its client portfolio to over 25,000 businesses by March 2022, it said, thus taking its network of no dues to over 1.5 lakh.
“A large number of businesses continue to face a massive gap in cash flow, and that is directly linked to the long-pending overdue invoices by their customers. There is an immediate need for businesses to first improve their collections and reduce credit risks to unlock future growth of their business, and Recordent is a perfect tech solution for that,” said Gopala Krishna of Kantamaneni Family Office.