Recko Success Story: Simplifying Financial Operations for Businesses

Recko Success Story Most entrepreneurs stress the challenge of reconciling transactions; it’s one of those necessary evils that everyone has to deal with but no one wants to do. We’ve heard individuals complain about the necessity to reconcile payments over the years in banking and payments. Over last few years, there has been a continual increase in the number of online payments, making it tough for many businesses, banks, and financial firms to keep track of expenses flowing around the organization.  

Recko – Company Highlights

• Startup Name-Recko, Inc.
• Headquarters-Bangalore, Karnataka, India
• Industry-Financial Services, Software, FinTech, SaaS
• Founders-Prashant Borde, and Saurya Prakash Sinha
• Founded-2017
• Current CEO-Saurya Prakash Sinha
• Website-www.recko.io

Recko – Latest News

In October 2021, Recko got acquired by San Francisco-based Fintech company Stripe. Stripe offers a wide array of services including payment and billing services, and tools for managing business operations. By acquiring Recko, Stripe is set to expand its services further. As per the deal, Recko’s entire team will join Stripe’s remote engineering hub and will work to develop and scale Stripe’s products.

About Recko and How it Works?

Recko is a Software as a service reconciliation artificial intelligence-based software that assists finance teams at eCommerce marketplaces and transactional platforms in keeping track of the entire transaction cycle and business deals in order to avoid slipping and tripping hazards.

Recko was created with the goal of providing financial stability to businesses with significant transaction volumes, such as e-commerce platforms, insurance companies, and banks, by automating the entire reconciliation process. It ensures that each transaction is recorded and that all settlements are completed on time because it is an independent third-party transaction reconciliation layer.

“This also helps when customers have to be refunded as we use many different ways to make a single payment these days (including wallets, vouchers, gift cards, net banking and CC),” added Prashant Borde, cofounder and CTO at Recko.

Recko’s current team consists of 60 people with extensive experience working for e-commerce and fintech companies such as Flipkart, Amazon, Nutanix, PhonePe, Ola Money, Razorpay, and others.

Recko – Founders and History

IIT Gandhinagar alumni Prashant Borde and Saurya Prakash Sinha launched Recko in 2018.

Prashant and Saurya are serial entrepreneurs and have have robust industry experience.  Prashant Borde co-founded shared computing platform GridAnts in 2012, which was later renamed Cubeit. The platform was acquired by Myntra in 2016, after which Prashant joined Jio.

The duo had hands on experience of developing processes that aided the product and finance teams in contributing to the company’s growth and accelerated financial governance. This led them to discover that organizations of all sizes battle to keep track of payments and face manual restrictions when it comes to reconciliation, computations, and scaled monetary operations management. Thus  Saurya and Prashant decided to intervene and help businesses to manage their finances better by simplifying reconciliation, commission calculation, Payout creation, and reporting.

Following are some of the primary gaps Recko is trying to close –

• Unstructured data in large quantities

• Use of a large number of people

• Transparency and traceability of operations are lacking.

• Time and expense spent on reconciliation have grown.

AI plays a role in resolving these issues on various levels. First, algorithms aid in the extraction of relevant information and analysis from more than 80% of data, which is critical in the financial domain because fintech models would be unable to function without data.

Recko – Mission and Vision

Recko’s mission statement says, “Recko was started with the mission to help businesses manage their financial operations with agility, simplicity, and innovation. Today’s businesses need a collaborative interlock between their finance, product, and business functions to grow exponentially and stay ahead of the competition. Be it reconciliations, payment operations or complex commission calculations; Recko does it all.”

Recko – Products and Services

Reconciliation –  Bringing your company’s transactions up to date in terms of accuracy, efficiency, and speed.

Commission Calculation – Automate your entire charge calculating procedure and keep track of external payment SLAs.

isburse payments to customers and subcontractors, the company integrates easily with payment partners.

Recko – Business Model & Revenue Model

Recko is a B2B company, and earns revenue by charging subscription fee from its clients.

Without writing a single word of coding programs, Recko allows financial teams to ingest, enrich, and reconcile millions of transactions in hours rather than days. Recko cuts labor by 50 to 60 percent while keeping a close eye on transactions to guarantee money goes to the right parties at the right time with the correct deductions.

Recko is now processing enormous amounts of transactional data to digitize financial control within organizations, as well as developing Machine Learning models to detect abnormalities, risk, and intelligence in the money flow.

Recko – Revenue and Growth

The revenue for the Fiscal Year 2019 was USD 388K, up from USD 186K in the previous year. Recko’s customer’s includes top marketplaces like Grofers, Meesho and Dunzo.

Recko – Competitors

iPaymy, Pulse iD, SAP Concur, Sage Intacct, G2 Deals, Bill.com, Tradeshift, Invoiced, DocuWare, Spendesk, Riovic, and SureCash are among Recko’s main competitors.

Recko – Challenges Faced

The product needed to be stable because the company was working with extremely large data volumes. As they add features to the product, it continues to evolve. The aim is that the number of problems and inconsistencies will decrease as time goes on. Since the platform handles finances, the team at Recko needs to be extra careful so that nothing goes wrong.

“We needed to be precise, and we needed to be correct at scale. The crew spent a significant amount of time double-checking the figures.”, the Recko CEO said.

On the technology side, figuring out how to process these transactions was a significant issue for everyone on the team, since this used to take them over 3-4 days to handle more than 50-60 million transactions. They can now complete it in 30 minutes.

” for reconciliation, we are almost running at 100 million transactions in one hour. So the systems are becoming much faster. The idea is how do we do this at a much cheaper cost and faster. So this is where a lot of investment is going in,” said the CEO, Saurya Prakash Sinha.

Supporting scale was one of the issues they confronted. To make scale and security a basis in the architecture, Prashant says they had to redo a major portion of the first iteration.

Recko – Future Plans

“As we onboarded new customers, we realized that businesses looked at data very differently across industries. We did not want to leave any stone unturned, but we had a mission — to give the best of it. We added analytics, custom reports, commission calculation, and other integrations including storage services, payment gateways, and banks,” says Prashant.

The team quickly began working with clients from various industries and geographical places. Recko introduced geographies such as Southeast Asia and the European Union. Versioning was also released to support audit logs and time travel capabilities that needed to be reworked to allow future growth.

“We are planning to open APIs as well so that they can be integrated deeper into companies’ tech stack to solve a multitude of problems. Our long-term goal is to provide enough insights that enable businesses to make financial decisions in real-time,” says Prashant.

Recko – FAQs

What does Recko do?

Recko is a Software as a service reconciliation artificial intelligence-based software that assists finance teams at eCommerce marketplaces and transactional platforms in keeping track of the entire transaction cycle and business deals in order to avoid slipping and tripping hazards.

When was Recko founded?

Prashant Borde and Saurya Prakash Sinha launched Recko in 2017.

Which companies do Recko compete with?

iPaymy, Pulse iD, SAP Concur, Sage Intacct, G2 Deals, Bill.com, Tradeshift, Invoiced, DocuWare, Spendesk, Riovic, and SureCash are among Recko’s main competitors.