By Nancy Dahlberg
Pandemic-fueled supply chain shortages clobbered the hospitality industry, with 86% of hoteliers reporting impact to their operations. Today, hotels continue to face challenges with procurement due to inflation and ongoing supply chain challenges.
That’s where Reeco comes in. The startup that was founded in Israel and staked its US headquarters in Miami last year provides a streamlined process for hotels and other hospitality buyers to order everything from food and beverages to cleaning supplies. Hotels with brands such as Hilton, Marriott and Ramada are already using the hospitality marketplace.
Today, Reeco announced the company has raised $10 million in seed funding. The funding round was led by Net Capital Ventures and Joule Ventures, with participation from Eynat Guez, CEO of Papaya Global, and other angel investors.
“[Reeco] created a totally new way of ordering that’s a game changer for hospitality buyers,” said Dan Naftali, owner of Net Capital Ventures. “In the current market, solutions that provide an immediate ROI are king, and Reeco provides more value, quicker, than anything I’ve seen in recent years.”
The company created an easy-to-use online store. Buyers choose the products, and their order is automatically matched with the optimal supplier based on price, availability, and delivery dates. Reeco can also divide an order between up to four suppliers to ensure product availability at the lowest prices, while giving buyers a one-stop-shop for checkout. Their solution results in savings of 19% on average per order while cutting time spent on placing and receiving orders by 80%, the company said.
Customers of Reeco include Playa Largo Resort – Autograph Collection, Hilton Aventura, The Even Hotel, hotel management company Shaner Hotel Group, as well as hotels from leading brands like Marriott and Ramada.
“Reeco was built for the unsung heroes of hospitality,” said co-founder and CEO Henrik Shimony, who knows the challenges first-hand, having managed a string of hotels his family owns in Israel. “The purchasing department was always the most neglected. This makes no sense, considering hotels’ largest expenses originate there. Reeco helps mitigate supply chain issues and food waste by using AI-driven insights into purchasing habits.”
Citing Miami’s rapidly-growing tech scene and and mighty hospitality industry, Reeco selected Miami for its US soft landing, establishing its US base in Miami last year. It wasn’t alone: At least two other Israeli hospitality startups – Tabit and Sauce – also now call Miami their US home.
Since arriving in Miami, Reeco has grown from an office for two for 2 to a 15-person space in the Brickell area. “We’ve added Shaner Hotel Group in addition to a few more Miami properties,” Shimony, who co-founded the company with Omri Shalev, told Refresh Miami. “We plan to significantly grow our team and expand our customer base over the coming months.”
The Reeco team is currently just under 30 people globally, Shimony said, and “we will be 10 people in Miami shortly.” Reeco is currently hiring for a customer success and sales roles in the Miami area.
Follow Nancy Dahlberg on Twitter @ndahlberg and email her at [email protected]
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