Stripe on Wednesday announced its plans to acquire Recko, a financial operations platform based in Bangalore, India. The terms of the deal were not disclosed.
Recko’s payments reconciliation software will add to the growing list of tools Stripe is providing for internet businesses, continuing Stripe’s expansion beyond payments acceptance.
Recko helps automate parts of payments reconciliation — an accounting process that compares two or more sets of records, such as a company’s internal sales log and their external bank statement. A retailer, for instance, would want to reconcile a $100 purchase on their website with a $100 payment reported by their payment processor and the $99 deposit (less a $1 processing fee) received in the bank.
Recko’s software specifically automates the collection of transaction data from financial systems and payment processors, simplifies the process of matching transactions, and it accounts for factors like currency differences and refunds. It also helps businesses produce and export regular reconciliation reports.
Payments reconciliation can become more complex as a business grows, particularly for internet businesses that have to handle things like currency conversion.
Stripe has been busy this year rolling out a series of tools for internet businesses, including its Revenue Recognition tool, the tax compliance tool Stripe Tax and Stripe Identity for identity verification. SaaS and subscription-model businesses represent large, quickly-growing markets for Stripe to pursue.
“Stripe helps millions of businesses around the world streamline their revenue management — from subscriptions and invoicing to revenue recognition and bookkeeping,” Stripe Chief Product Officer Will Gaybrick said in a statement. “With Recko, we’ll automate their payments reconciliation, a critical input into their overall financial health.”
Recko was founded in 2017, and its customers currently include internet businesses like Deliveroo, Meesho and PharmEasy. Once the acquisition closes, Recko’s team will join Stripe’s remote engineering hub. The deal is Stripe’s latest investment in India — the company has been hiring locally and updated its data locality architecture.