- Before ReckoAfter Recko
- Tracking huge volume of transactions and revenue movement using spreadsheets and VLOOKUPS had become impossibleManaged accurate transaction and revenue reconciliation with ease, despite 30X growth in transaction volumes
- Maintaining an organised record of all transactions was an arduous task as data was fragmented across multiple systemsEnhanced ability to track and analyze all their transaction-level data from a single repository
- Manual tracking of receivables for every order from different partners created high probability of cash leakagesPlug cash leakages and retrieve money effectively from their vendors and partners on a weekly basis. Any delay in receivables would reflect immediately on the system
- Concerns around data accuracy delaying the process of being ready for statutory auditsAccuracy of data improved the quality and reliability of reports with faster closing of books and clean data being readily available for audits, compliance and investor reports
Social Commerce • Bangalore, India
Meesho + Recko - The Winning Team
Recko allows us to narrow down on our transactional data and fetch them with ease. We don't have to write codes or manually search our system at any point. We've data available whenever we want in spite of huge transaction volumes per day. It’s really that simple and powerful.
Shrathi KR
Revenue Assurance Manager, Meesho
About Meesho
Meesho is India's largest social e-commerce marketplace currently serving 10+ Million entrepreneurs across India and Indonesia. It enables entrepreneurs and small businesses to build a livelihood by selling products through digital and social channels without any initial investment. Meesho provides products at low prices, has flexible return policies, and a variety of digital and cash based payment methods and delivery options.
The Problem
Meesho's transaction volumes were growing in scale every few months. Analyzing, matching or tracking these orders manually became an arduous task. Receivables and payouts kept accumulating over weeks and months while Meesho also had to solve queries from suppliers and entrepreneurs if the payment was processed or if there was a pending tag on their orders. This information was stored at different places in their internal systems and that created many operational challenges. This meant that it was impossible to keep up with the expected financial cadence. With huge orders being processed manually every day, chances of error were higher and would often go unidentified. Meesho was evaluating a host of ERP solutions to solve this problem but they weren’t able to find any which could solve for the scale and complexity that they were dealing with.
Manual reconciliation for today’s scale is totally not possible and traditional ERP systems are not built for Internet businesses where we have so many different order statuses and money movements involved in just a single order.
Amit Nagure
Associate Director Finance,
Meesho
The archaic way of matching transactions proved to be futile as traditional ways would not cater to all requirements and transaction flows involved. Even a gap of 1% in the reconciliation of transactions would mean that the finance team would have to reconcile everything manually again.
The Solution
With Recko, Meesho was able to set in motion a system which was compatible with their high volume and complex payment flows. The task of reconciling transactions at an order level was taken care of by Recko while the Meesho finance team only had to deal with exceptions. Data pertaining to every transaction was available on Recko and could be retrieved with ease:
Over time with the help of Recko, we have been able to increase the frequency of reconciliation. Now we are able to do receivable reconciliation on a weekly basis. This has helped us detect excess payouts or missing receivables much earlier and take actions on them.
Shrathi KR
Revenue Assurance Manager,
Meesho
The Meesho finance team has been able to significantly improve the revenue assurance and finance operations process with the workflow enabled by Recko. Meesho now effectively recovers money from their suppliers and delivery partners for any transaction that has not been fulfilled or has any discrepancy involved. The finance function was also able to swiftly expand operations to support the Indonesia market and became a growth driver and enabler for the entire business. Year end close and audit processes were streamlined, thanks to the data readily available on Recko. In addition, it improved Meesho's control and clarity into their complete transactional landscape and cash flow processes, while easing reporting to any external stakeholders involved. The team has been able to bring about significant improvements in the ageing of receivable, cash related leakages and overall trust in financial reporting.
Recko works like an extended part of our finance team at Meesho. We are very happy with the support provided by Recko, as the team quickly solved any issues that were flagged.
Amit Nagure
Associate Director Finance,
Meesho
Results
- Managed 30X growth in volume of transactions with ease.
- Reduced time to identify and plug discrepancy by 75%.
- Build trust and credibility for the financial data ecosystem in the organisation, thereby enabling the finance team to become a growth driver.
- Faster communication with their delivery partners and payment gateways on SLA's. Agility in communications helped Meesho accelerate and optimise the receivables process.
- Brought clarity into their financial operations and impacted it positively by plugging leaks and reducing errors.
- Expanded seamlessly into the Indonesia market with no disruptions in the finance operations.