Reeco Secures $15m to Transform Hotel Procurement with AI Platform
Reeco, the groundbreaking AI-driven platform designed for hotel procurement, has successfully secured an impressive $15 million in a Series A funding round.
The innovative platform is set to revolutionize the hospitality industry by replacing antiquated manual systems with a cohesive, efficient, and AI-powered solution. This milestone follows a previous $10 million seed round, bringing Reeco’s total investment to a commendable $25 million.
Speaking on the achievement, Reeco co-founder and CEO Henrik Shimony expressed, “This Series A funding reflects strong investor confidence in our vision to revolutionise procurement in the hospitality space. We’re witnessing unprecedented demand as operators recognize that modernizing their procurement and back-of-house operations is no longer optional — it’s essential for staying competitive in today’s market. With this funding, we’re enhancing our platform development to meet growing demand, expanding our technological capabilities, while maintaining the exceptional service our customers rely on to transform their operations.”
The successful funding round was spearheaded by Aleph VC, with significant contributions from Net Capital Ventures and Joule Ventures. The funds raised will be strategically utilized to bolster research and development, facilitate customer acquisition, scale sales and marketing teams, and introduce new platform features.
Aleph’s Tomer Diari commented on the investment, stating, “Reeco benefits from a charismatic founding team with deep domain expertise and a strong pull from the market. It’s already demonstrated strong product-market fit and is positioned to transform one of the largest sectors in our economy. We are highly impressed by what the Reeco team has accomplished and are excited to partner with them and support their journey.”
Revolutionizing Hotel Procurement with AI
Reeco’s AI platform is meticulously designed to streamline the entire procurement process, covering everything from inventory and recipe management to accounts payable. This integration promises to save valuable time and reduce costs significantly.
The platform enables users to make purchases at real-time prices from their preferred vendors, perform inventory audits via a convenient smartphone app, and manage recipes while meticulously tracking food costs. Additionally, it automates accounts payable tasks, which substantially enhances efficiency in hospitality management.
In a remarkably short span of less than two years, Reeco has experienced an extraordinary 800% growth in adoption, fundamentally transforming the operational processes for a diverse range of clients. These include expansive full-service resorts as well as more modest select-service properties, highlighting the platform’s versatility and widespread appeal.
A Comprehensive Solution for Hospitality Management
Reeco co-founder and CTO Omri Shalev emphasized the uniqueness of the platform, stating, “Reeco is the only platform that connects purchasing, receiving, recipe management, inventory control, and accounts payable. By using these modules on the Reeco platform, hotels can finally eliminate data silos, ditch their Excel spreadsheets, and stop toggling between supplier portals and paper forms. Gone are the days of manual data entry, scattered paper trails, and jumping between multiple supplier websites. Any team member — from executive chefs to controllers — can quickly master the system and start optimizing their operations immediately.”
This comprehensive approach ensures that hospitality management is streamlined, coherent, and efficient, setting a new benchmark for the industry. The platform’s capacity to integrate various aspects of procurement into a singular system mitigates the challenges associated with traditional processes.
As Reeco continues to innovate and expand, the additional funding and support from investors serve as a testament to the transformative potential of its AI platform. This pivotal development is poised to drive the hospitality industry’s transition towards a more modernized, efficient future.
