Recko, an artificial intelligence-driven fintech startup that focuses on enterprises, has raised $6 million in a Series A round of funding, led by Vertex Ventures Southeast Asia and India.
Returning investor Prime Venture Partners also participated in the round, according to a statement from the company.
The company offers a software-as-a-service (SaaS)-based reconciliation platform that helps clients keep track of the transaction lifecycle and commercial contracts for organisations.
The Bengaluru-based company will use the fresh capital to hire talent, expand into overseas markets and develop products, it said.
In August, Recko raised an undisclosed amount in a follow-on seed round from a group of high networth individuals (HNIs).
Founded in 2017 by former Townrush founder Saurya Prakash Sinha and Prashant Borde, Recko works with multiple marketplaces, including grocery delivery platform Grofers, social commerce app Meesho and on-demand delivery platform Dunzo. The company is currently also running pilots with banks, non-banking financial companies (NBFCs) and insurance companies.
“Over time, we have evolved to add cash-on-delivery transactions, logistics and aggregator reconciliations to make it a complete receivables suite. As we move forward, we intend to build a solid financial platform on which fast-growing technology businesses can be built,” Sinha, CEO of Recko, said in the statement.
The company’s reconciliation layer helps in timely settlements among multiple parties and ensures that businesses receive settlements in accordance with the agreed rate cards and settlement cycles. They can also track and report payment realisation, refunds and chargebacks.
“We believe that the CFO function will see high-quality platforms driving disruption in the way processes such as reconciliation are managed, and high-quality software, along the lines of what Recko is developing will make complex problems look trivial,” Piyush Kharbanda, partner at Vertex Ventures Southeast Asia and India, said.
Deals in the fintech space, focused on enterprises, have seen an uptick over the past few months, before the Covid-19 lockdown.
Startup-focused corporate credit card provider Karbon Card raised $2 million from a group of Indian and Chinese angel investors, including founder of Freecharge and Cred Kunal Shah, and CEO of Pine Labs Amrish Rau, in March. API platform for banking and payments companies YAP raised $1.3 million in February from Rau and Shah.