Reeco raises $15M to AI-driven procure-to-pay platform for the hospitality

Reeco, the AI-driven procure-to-pay platform specifically designed for the hospitality industry, raised $15 million in Series A funding. The investment, bringing Reeco’s total funding to date to $25 million – following a $10 million seed round – is aimed at speeding up Reeco’s mission of modernizing the process of procurement in hotels from the obsolete system with a centralized AI solution.

About the Company

Reeco was founded by industry veterans Henrik Shimony and Omri Shalev to solve the inefficiencies that occur in hotel procurement and back-of-house operations. Most traditional ways rely on manual processes, using Excel sheets and punchout systems, which usually end up resulting in errors and higher operational costs. Reeco’s platform consolidates these into a single system, user-friendly for purchasing, inventory management, and invoicing.

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Funding Details and Investor Insights

The Series A round was led by Aleph VC, the venture capital firm known for funding innovative startups. In addition, participation came from Net Capital Ventures and Joule Ventures, both firms that have an established history of investing in disruptive technologies. These investors’ confidence highlights the tremendous market potential that Reeco’s solutions hold for changing hotel procurement.

Strategic Objectives After Funding

With the new capital, Reeco intends to

• Enhance Platform Capabilities: Spend on research and development to come up with better features that advance the automation of procurement activities and enhance user experience.
• Expand Market Reach: Drive customer acquisition more aggressively and grow sales and marketing teams to enter other markets in the hospitality industry.
• Deliver New Platform Features: Develop and introduce new functionalities responding to emerging needs in hotel procurement and back-of-house operations.

Technological Innovations

Reeco’s solution utilizes artificial intelligence to give customers a complete procure-to-pay solution. The main functionalities are:

• Unified Purchasing System: The user can now order from any contracted vendor within a few clicks, thus making the procurement process simpler.
• Real-time Inventory Management: Hotels can easily manage recipes and track real-time food costs by automatically carrying out inventory audits that minimize waste while optimizing resource allocation.
• Automated Invoicing: This streamlines the invoicing process by automatically coding general ledger and integrating with other financial systems. This minimizes errors and enhances efficiency.

Market Adoption and Growth

Since its inception, Reeco has seen great growth, as the client base within the hospitality industry expands rapidly. Replacing old manual processes with a seamless AI-driven solution has helped the platform appeal to hotel operators looking to optimize operational efficiency and reduce costs.

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Leadership Perspective

Reeco co-founder and CEO Henrik Shimony said: “This Series A funding is a testament to investor confidence in our vision to transform the procurement space within hospitality. We are seeing an unprecedented level of demand as operators realize that modernizing their procurement and back-of-house operations is no longer a choice-it’s a necessity for staying competitive in today’s market.”

Investor Commentary

According to General Partner Tomer Diari of Aleph VC, Reeco has tremendous potential: “Reeco has a strong founding team, very charismatic with deep domain expertise, and significant market pull. Already, the product-market fit has been established with great force and is now on its way to revolutionize one of the biggest sectors of our economy. We are thoroughly impressed by what the Reeco team has managed and are very much looking forward to partnering with them and joining forces to accelerate this journey.”

Future Prospects

The new funding will enable Reeco to move at a faster pace in the transformation of hotel procurement and back-of-house operations. The company’s focus on leveraging AI to streamline processes aligns with the growing demand for efficiency and cost-effectiveness in the hospitality industry. As Reeco continues to innovate and expand its platform capabilities, it is well-positioned to become a leader in the procure-to-pay solutions market for hotels.