Stripe acquires Bangalore-based Recko to expand its payment services portfolio
27 Oct 2021
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Stripe, the San Francisco-based $95 billion fintech, is acquiring Recko, which has built a platform that lets businesses track and automate payments reconciliation, covering both outgoing and incoming payments and the full ecosystem of inbound and outbound payment sources and receivers.
Bangalore-based Recko will be Stripe’s first acquisition in India when the acquisition officially closes after meeting customary closing conditions.
Like Stripe itself, Recko leans heavily on APIs to integrate and work with different data sources and this will be another acquisition to expand the services it offers alongside its core payments product.
Stripe did not disclose the terms of the deal.
Recko had raised about $7 million prior to this, with investors, including Vertex Ventures, Prime Venture Partners and a number of individuals, including Taavet Hinirikus, the co-founder and former CEO of Wise.
Recko has been seeing a lot of traction internationally, with Deliveroo, Meesho and PharmEasy among its wider list of customers.
Stripe plans to integrate Recko into its wider payments stack, but also notes that existing Recko users will be able to continue using it as before.
The acquisition is the latest move from Stripe to expand its services portfolio beyond basic payments, thereby increasing revenue from existing customers as well as new customers.
Earlier this year, Stripe acquired Bouncer to integrate card authentication and TaxJar to bring in automatic sales tax tools. Other international acquisitions included Paystack in Nigeria and Touchtech in Ireland, which helped expand its network of territories and tap into local expertise in those markets.
Other features and products launched by Stripe to cover other aspects of the payments process include revenue recognition, billing and invoicing services.
Stripe’s moves aare part of a bigger consolidation in the world of fintech where stronger players have emerged covering the entire range of payments ecosystem.
“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,” said Will Gaybrick, Stripe’s chief product officer, in a blog post announcing the deal. “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.”
For Recko, it’s a window to scaling in a way that would have been more challenging on its own, aligned with one of the bigger and interesting privately-held companies out there challenging the established players in financial services.
“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, in a statement. “Internet businesses need tools that can scale with their growth and automate the tasks required to produce an accurate picture of their financial health.”
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