Stripe acquires Recko, its first Indian acquisition to help internet businesses automate payments reconciliation
- ByStartupStory | October 21, 2021
Stripe, a major San Francisco-based fintech, is set to acquire Recko, an India-based payment reconciliation company, marking the first global fintech acquisition in the Indian market. The terms of the deal have not been disclosed.
Payment reconciliation, for the uninitiated, is a form of accounting that compares internal accounting data with external bank statements to make sure everything matches and there are no discrepancies. For small businesses with fewer transactions, reconciliation can be a relatively simple process, but as a business grows and starts processing multiple currencies, chargebacks, refunds, etc., things can get complicated quite quickly.
Recko’s payment reconciliation software will join Stripe’s growing list of tools to provide Internet businesses, extending Stripe’s expansion beyond just accepting payments.
The acquisition of Recko, which is subject to customary closing conditions, is likely to bolster Stripe’s presence in India, which, as one of the world’s most highly regarded startups, has failed to establish a firm foothold even after four years. land operations in the country.
The company will automate Recko’s payment reconciliation with the potential goal of offering services beyond its core payments business, she said in a blog post. He did not disclose the financial details of the deal.
As part of the deal, the Recko team will join Stripe’s outside engineering centre to help build and scale Stripe’s products globally. And existing Recko users were able to use the company’s products right away.
Recko was founded in 2017 and currently counts internet companies such as Deliveroo, Meesho and PharmEasy among its customers. Last April, Recko raised $6 million (approximately Rs 46 crore) in its Series A funding round led by Vertex Ventures, the venture capital arm of Temasek. A year earlier, the company had raised $1 million in its financing round from Prime Venture Partners.
By March, Stripe, currently valued at $95 billion, had raised $600 million. At the time of fundraising, Stripe said it will soon start offering its payment services to merchants in India.
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