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Global fintech giant Stripe acquires Bengaluru-based Recko, marking its first India acquisition

Global fintech giant Stripe acquires Bengaluru-based Recko, marking its first India acquisition

San Francisco-based Stripe said in a blogpost that the acquisition of Recko will help the company include payment reconciliation within its infrastructure.

Recko's team will join Stripe's remote engineering hub, helping to build and scale Stripe's products globally. Photo: Reuters Recko's team will join Stripe's remote engineering hub, helping to build and scale Stripe's products globally. Photo: Reuters

Global fintech firm, Stripe has announced the acquisition of Bengaluru-based enterprise financial software firm, Recko at an undisclosed amount, marking its first India acquisition. San Francisco-based Stripe said in a blogpost that the acquisition of Recko will help the company include payment reconciliation within its infrastructure. Recko's team will join Stripe's remote engineering hub, helping to build and scale Stripe's products globally. This acquisition comes amid Stripe's increased investment in India, including updated data locality architecture and rapid local hiring, the company said in a statement.

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Payments reconciliation is an accounting process that compares two or more sets of records-for example, a company's internal sales log and their external bank statement-to confirm accuracy. Finance teams perform reconciliation to uncover discrepancies, avoid incorrect accounting, and understand a company's financial health at a point in time

"Payments reconciliation shouldn't be a mild headache that balloons into a migraine as a company grows-it should be an easy, highly automated process," Will Gaybrick, Stripe's Chief Product Officer, said in a statement.

"Stripe helps millions of businesses around the world streamline their revenue management-from subscriptions and invoicing to revenue recognition and bookkeeping. With Recko, we'll automate their payments reconciliation, a critical input into their overall financial health," he added.

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The latest acquisition by Stripe will help it expand beyond the payments acceptance, thereby bringing millions of users another tool to manage and grow their revenue alongside the company's other products like Stripe Revenue Recognition, Stripe Billing, Stripe Invoicing, etc.

"Joining Stripe is a perfect next chapter for Recko, and we can't wait to help grow the GDP of the internet by removing the burden of reconciliation complexity," commented Saurya Prakash Sinha, CEO and co-founder of Recko. "Internet businesses need new financial tools that can scale with their growth and automate the tasks required to produce an accurate picture of their financial health," he added.

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Founded in 2017 by serial entrepreneurs Saurya Prakash Sinha and Prashant Borde, Recko has recently started working with various banks, NBFCs, and insurance companies and is currently running successful pilots with them. Earlier this year, the platform raised $6 million in Series A funding. The investment was led by Vertex Ventures SEA and India, and saw participation from existing investor Prime Venture Partners.

"Today's news is a testament to the quality of engineering and products being conceived and developed in the Indian startup ecosystem - and it's great to see these innovations going global. At Prime, we have been privileged to work with Saurya, Prashant, and the Recko team from the very beginning and wish them the very best in the journey at Stripe." Sanjay Swamy, managing partner, Prime Venture Partners said.

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