US-based global fintech giant Stripe entered into a deal to acquire Bengaluru-based enterprise financial software firm, Recko for an undisclosed amount. This marks Stripe’s first acquisition in India.
The San Francisco-based said in a blogpost that the acquisition of Recko will help the company include payment reconciliation within its infrastructure.
As part of the deal, 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, which has been actively hiring in the country across functions of product, engineering, policy including updated data locality architecture and rapid local hiring, the company said in a statement.
Stripe first stepped into India back in 2017, and continues to ramp its investment in local data architecture in India.
“Payment’s reconciliation shouldn’t be a mild headache that balloons into a migraine as a company grows-it should be an easy, highly automated process,” said Will Gaybrick, Stripe’s Chief Product Officer.
The move is in line with Stripe expanding beyond its core offering of payment acceptance and looking at payment reconciliations apart from offering payment infrastructure to businesses.
At present, Stripe offers products including payment links, billing and subscription software as well as online invoicing to its users.
Payments processing startup Stripe is the highest valued venture-backed private company in the US and was recently valued at $95 billion in April this year, after closing its $600 million raise.
It has till date raised more than $2.2 billion in venture funding.
Through the acquisition, Stripe will look to add another tool which will help businesses automate the collection of transaction data from their financial systems and non-Stripe payment processors.
It will also help businesses match thousands of individual transactions with just a few clicks, saving finance teams manual reconciliation tasks while also helping them account for currency differences and chargebacks.
“Joining Stripe is a perfect next chapter for Recko, and we can’t wait to help grow the GDP (gross domestic product) of the internet by removing the burden of reconciliation complexity,” said Saurya Prakash Sinha, chief executive officer 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,” added Saurya.
Four-year-old Recko provides artificial intelligence-powered reconciliation of digital transactions, and counts Deliveroo, Meesho, PharmEasy, as customers.
The company has raised $7 million till date from the likes of Prime Venture Partners and Locus Ventures.