Global technology company Stripe is acquiring payments reconciliation startup Recko for undisclosed terms, Stripe said in a statement emailed to PYMNTS on Wednesday (Oct. 20).
The acquisition will help Stripe further advance its creation of online economic infrastructure with the integration of Recko’s automated payments reconciliation software. Payments reconciliation, which is an accounting process that uncovers discrepancies, has been complicated by the many nuances of digital transactions — currency conversion, refunds, chargebacks, bundled bank deposits, and more.
“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.
“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,” Gaybrick said.
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Recko’s software automates central components involved with reconciliation, which makes it easier for finance teams to complete the detailed and drawn-out process. Recko removes the barriers to reconciliation by automating the collection of transaction data from financial systems and matching it to individuals with just a few clicks.
The acquisition of Recko is the last major step in Stripe’s journey to expand beyond payments and introduce another tool for customers that complements its Stripe Revenue Recognition, Stripe Billing, Stripe Invoicing, and other tools, according to the statement.
Read more: Stripe Launches Revenue Recognition Tool to Automate Financial Reporting
Saurya Prakash Sinha, CEO and co-founder of Recko, said that online firms can scale and automate with the right solutions that will offer them an “accurate picture of their financial health.”
“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,” Singa added.
Founded in 2017 and headquartered in Bangalore, India, Recko works with major brands like Deliveroo, Meesho and PharmEasy. Its team will join Stripe’s remote engineering hub and work to develop and scale Stripe’s offerings worldwide.
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