By Nancy Dahlberg
Reeco, a startup that has developed an AI-driven procure-to-pay platform for the hospitality industry, announced today it has secured $15 million in Series A funding.
The round was led by Aleph VC and included Net Capital Ventures and Joule Ventures. The funding will be used to support research and development, customer acquisition, the scaling of sales and marketing teams, and the delivery of new platform features. In 2023, Reeco raised a $10 million seed round, bringing total funding to $25 million.
Reeco was founded by Henrik Shimony and Omri Shalev in Israel in 2021 and a year later staked its US headquarters in Miami. The company was attracted by Miami’s massive hospitality industry and growing tech community. Indeed, in recent years, several Israeli hospitality-tech startups, and dozens more companies innovating for other industries, have made soft-landings in the Magic City.
Reeco developed an AI-powered platform that integrates all critical function in hotel procurement processes so that employees no longer have to use manual processes or outdated technology. With Reeco, users can purchase from any contracted vendor in just a few clicks and receive goods, manage recipes to track real-time food costs, and automate inventory audits and invoicing.
“Managing a hotel’s six-figure purchases with outdated tools made no sense,” said Shimony, Reeco’s CEO. “We’re witnessing unprecedented demand as operators recognize that modernizing their procurement and back-of-house operations is no longer optional. It’s essential to remain competitive in today’s market.” Shimony knows the challenges first-hand, having managed a string of hotels his family owns in Israel.
“Hotels can finally eliminate data silos, ditch their Excel spreadsheets, and stop toggling between supplier portals and paper forms,” added Shalev, Reeco’s CTO who previously held software engineering roles at Microsoft and Samsung. “Any team member, from executive chefs to controller, can quickly master the system and start optimizing their operations immediately.”
Reeco says it has achieved an 800 percent adoption growth rate in less than two years and reports that it serves hundreds of customers, including hotel operators Vision Hospitality, OTH Hotels Resorts, and Scarlett Hotel Group.
Reeco is positioned to transform one of the economy’s largest sectors, said Tomer Diari, General Partner of Aleph, a VC firm that focuses investments on Israeli innovation. “We are highly impressed by what the Reeco team has accomplished and are excited to partner with them and support their journey.”
Photo at the top of this post: Left to right, Reeco co-founders Henrik Shimony, CEO, and Omri Shalev, CTO.
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