Reeco, an AI-driven procurement platform for the hospitality industry, has raised $15 million in Series A funding.
The round, led by Aleph VC with participation from Net Capital Ventures and Joule Ventures, brings the company's total funding to $25 million.
The startup, founded by Henrik Shimony and Omri Shalev, aims to revolutionize hotel procurement by replacing traditional manual processes and legacy systems with a unified digital platform. Shimony's background in hotel operations and Shalev's software engineering experience at Microsoft and Samsung helped them identify a significant gap in the market: while consumer shopping had embraced digital solutions, hotel procurement remained largely analog.
"I could shop for groceries at home with the best tech available, but at the hotel, I was managing purchases in the hundreds of thousands with little technology or tracking," explained Shimony, Reeco's CEO. "From select-service hotels to full-service properties, the purchasing processes are stuck in the past."
Reeco's unified platform combines procurement, inventory management, and accounts payable functions for hotels, featuring digital audits and live pricing. The system has grown 800% in two years, serving hundreds of hotels from select-service to full-service properties.
'Reeco completely changed how we operate'
"Before Reeco, I spent more than 20 years managing a disorganized and time-consuming procurement process that involved Excel sheets, calling our suppliers, checking our emails,” said Brian Archibald, Executive Chef at Playa Largo Resort & Spa, an Autograph Collection Hotel. “Reeco has completely changed how we operate."
The new funding will support research and development, customer acquisition, and the expansion of sales and marketing teams. The company also plans to deliver new platform features to further enhance its capabilities.
"Reeco benefits from a charismatic founding team with deep domain expertise and a strong pull from the market,” said Tomer Diari, general partner at Aleph. “It's already demonstrated strong product-market fit and is positioned to transform one of the largest sectors in our economy."
Leading hotel operators, including Vision Hospitality, OTH Hotels Resorts, and Scarlett Hotel Group, have reported improvements in profit margins and operational efficiency since implementing Reeco's platform.