As digital transaction volumes and their complexity with multiple intermediaries and multiple agencies are increasing, Recko is positioned as an independent transaction reconciliation layer which ensures that the interacting merchants are receiving settlements in accordance with the agreed contracts, payout cycles, and are able to track and report payment realizations, refunds, and chargebacks.
Wherever there are business transactions with large enterprises like Swiggy, Ola, Grofers, Makemytrip, Redbus, GoIbibo, Curefit, etc there are multiple contracts and each one of them has built-in complexities like time of payouts and frequency et al. As the operations get deeper and wider, these just multiply making things very difficult for the team handling accounts. I have personally seen many accounts teams struggling with excel sheets and other means to try and reconcile transactions on time so that operations are unhindered. Many a time, the sheer volume and magnitude of transactions bring in a lot of human error and even simple slips can cause issues in millions if not more. Given this scenario, there is a very valid and important need for automated systems that can reconcile transactions reliably and regularly. This is where Recko comes in.
Founded in 2017, the startup is currently reconciling around a quarter billion transactions annually. It has reconciled transactions worth $2 billion in the first 12 months of operations. Their clientele includes companies such as Grofers and Meesho. Recko’s solution is suited to any company with high volumes of transactions such as e-commerce sites, insurance providers and banks. The solution is easy to use, scaleable and AI powered to ensure precision and correctness.
The founders are Saurya Prakash Sinha and Prashant Borde, they come with rich experience running startups prior to founding Recko (with successful exits). Recko has recently raised $1 million in seed funding from Prime Venture Partners. After raising their seed fund, the company will now focus on expanding their team, scaling operations and launching into unexplored sectors.
When you look at the problem that Recko is trying to solve, it may seem simple, but there are multiple important factors that come into the picture. First of all, this is a Financial Solution so it has to be accurate. The next is that being accurate has to be at scale, irrespective of the size of the enterprise and the volume of transactions, the results have to be dependable. The next and most important factor is that depending upon the sector that the enterprise is in, the complexities vary. For example, a food company and a e-commerce company have very different processes and needs.
Hence when the team started, they focused fully on building out the product. They then brought all required features and checks in place. The team spent time ensuring accuracy at scale and then went live with their first customers. It is also worth noting that from day one they have been handling transactions running into millions and delivering consistently.
When I spoke to the founders, they told me that on the engineering side, it was a huge challenge for them and the team to process these transactions because on an average, it used to take them more than 3-4 days to process more than 50-60 million transactions. Currently, they are doing it in 30 minutes. Similarly, for reconciliation, they are now running at roughly 100 million transactions in one hour. So the system has evolved and become much faster. From a data security angle, Recko has built-in controls to ensure zero deviation functioning with no errors.
The area that Recko is working in is a key sore point for many enterprises today. Imagine the scale of benefits it can bring to e-commerce and airlines to take a few examples. The team is now working on making the solution more scaleable and better. We will be following them in the future to see where they are headed.