Early-stage investment firm Prime Venture Partners has put $1 million (Rs 6.93 crore) in Recko Software Pvt. Ltd, a fintech startup that helps companies reconcile digital transactions, in a seed funding round.
Bengaluru-based Recko said in a statement that it has come out of the stealth mode and that it has built a software-as-a-service-based reconciliation product that keeps track of the complete transaction lifecycle and commercial contracts for organisations.
Recko said that, in the first 12 months since its launch, it has reconciled transactions worth $2 billion and that it is looking to scale this number by 10 times in the next year.
The company’s early customers include Grofers and Meesho, Recko said. Recko, founded in 2017 by serial entrepreneurs Saurya Prakash Sinha and Prashant Borde, has also started working with various banks, non-bank lenders and insurance companies.
“We see the current settlements and reconciliation process as a massive inefficiency in the payment lifecycle across industries such as banking, lending, insurance, telecom and e-commerce,” said Sinha, who is the also the startup’s CEO.
Sanjay Swamy, managing partner at Prime Venture, said the firm invested in Recko because of the team’s first-hand experience in addressing a huge problem that every company has - one that will grow by orders of magnitude with digitisation. “Reconciliation can only be solved by a neutral third-party and has traditionally been handled via a brute force approach of spreadsheets and a battery of analysts. Recko’s tech/AI driven approach has been very well accepted in the industry,” Swamy said.
Recko said it automates the transaction reconciliation process and allows the data to be traced throughout the entire transaction cycle. It does so by getting connected to payment gateways, banks and merchant's order management system, it said.
The Bengaluru-based investment firm was founded in 2011. Its key investment areas include fintech and financial services, SaaS and enterprise solutions, and healthcare and education.
Last year, Prime hit the final close of its third fund at Rs 400 crore (about $60 million). At the time, it said that the third fund would invest in around 15 startups at the seed level and will make follow-on investments between $3.5 million and $5 million in each.
The VC firm had raised $8 million for its first fund. In 2015, it secured $46 million for its second fund. It invested in 10 startups from its second fund.
Some of its bets include mobile marketing startup ZipDial, which was acquired by Twitter; mobile payments firm Ezetap, expense management platform Happay, invoice discounting platform KredX, online loan platform Moneytap, research platform Tracxn, and online recruitment platform for engineers HackerEarth.