By Lea Mira, HTN staff writer - 1.15.2025
Hotel technology solution provider Reeco has announced the successful completion of a Series A funding round, securing $15 million. This funding round marks a big milestone for the company, which has been developing an AI-driven procure-to-pay platform specifically designed for the hotel industry. The funds will reportedly be used to further the company’s strategic growth initiatives, which include the accelerated development of the Reeco platform.
The Reeco platform is a unified system that aims to streamline back-of-house operations in the hospitality industry. Traditional methods, such as Excel sheets and punchout systems, are often time-consuming and inefficient. Reeco’s solution integrates all critical functions, from procurement and receiving to inventory and recipe management, and even accounts payable. This integration is designed to save time and costs, while also improving operational efficiency.
The Series A funding round was led by Aleph VC, with participation from Net Capital Ventures and Joule Ventures. These funds will be used to support various aspects of Reeco’s operations, including research and development, customer acquisition, and the scaling of sales and marketing teams. Additionally, the funds will also be used to deliver new features on the platform.
Hotels have long been plagued by manual procurement processes and legacy systems. These outdated methods often result in a cascade of challenges, including unreliable data, volatile pricing, ineffective inventory management, and fractured vendor relationships. Reeco’s platform aims to eliminate these challenges by unifying all critical functions into a single system.
Reeco’s platform allows users to purchase from any contracted vendor in just a few clicks, manage recipes to track real-time food costs, and automate inventory audits and invoicing. The platform also offers an AI-powered smartphone app for quick and accurate inventory audits, and an accounts payable solution that automates GL coding based on the property’s coding patterns.
Reeco was founded by Henrik Shimony and Omri Shalev, who identified a critical gap in the market. While consumer shopping had embraced digital solutions, hotel procurement was still largely analog. In less than two years, the Israeli-based company, with US headquarters in Miami, has achieved an 800% adoption growth rate. This impressive growth showcases the platform’s ability to transform operations for a wide range of customers, from full-service resorts to select-service properties.
Leading hotel operators, including Vision Hospitality, OTH Hotels Resorts, and Scarlett Hotel Group, have credited Reeco with improving profit margins and operational efficiency across various departments. Arlene McCullough, senior vice president of accounting at Vision Hospitality Group, praised Reeco’s automation of GL coding and real-time visibility into spending, saying, “Reeco has completely modernized our accounts payable processes and saves us significant dollars in both operating costs and labor. With Reeco, GL coding is automated. I have real-time visibility into spend, at the property and department level, without having to waste time and money searching for answers. Reeco’s AI and leading-edge technology improves efficiencies and drives margins across your portfolio. In today’s ultra-competitive marketplace, Reeco is a must-have.”
With a total investment of $25 million to date, Reeco is well-positioned to continue its trajectory of growth and innovation in the hotel technology sector.