- Reeco, a Tel Aviv-based first-of-its-kind marketplace that connects hospitality buyers and suppliers, announced it raised $10 million.
Reeco – a Tel Aviv-based first-of-its-kind marketplace that connects hospitality buyers and suppliers – announced the general availability of its solution and $10 million in seed funding.
The company offers a streamlined process for hotels and other hospitality buyers to order everything ranging from food and beverage to cleaning supplies. And the company’s AI-powered marketplace offers near-perfect availability of products while substantially reducing costs. This 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 provides a one-stop shop with thousands of products to choose from in an easy-to-use online store. And buyers select the products they need, and their order is automatically matched with the optimal supplier from hundreds of top local and national suppliers, based on price, availability, and delivery dates.
Reeco has the ability to divide an order between as many as four suppliers to ensure full availability of products at the lowest prices, while enabling buyers to check out in one place and receive a single unified bill. These results in savings of 19% on average per order while cutting time spent on placing and receiving orders by 80%.
Last year, the company added Miami, Florida as its United States headquarters location. And among its customers, Reeco counts 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.
KEY QUOTES:
“If a hotel can’t get eggs to serve for breakfast, that negatively impacts a guest’s entire experience. Shortages are becoming commonplace and up to 30% of the items on each order can’t be filled by suppliers. Getting items from an alternate supplier isn’t as easy as just walking into another shop — it’s a difficult process which is further complicated by the fact that most procurement is still being managed with pen and paper.”
— Eyal Goldberger, former Area General Manager of AC Marriott and Element Brickell Miami hotels
“Reeco was built for the unsung heroes of hospitality. As a hotelier who has worked in every role, from the front desk to the back office, 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.”
— Henrik Shimony, Reeco co-founder and CEO
“I’ve been in the hospitality business a long time and never seen a product quite like Reeco. Reeco eliminates inefficiencies from the back office, saving substantially on both time and costs across the board. I feel confident saying unequivocally that Reeco is the future of procurement for hotels.”
— Nick Murray, VP of Food & Beverage at Shaner Hotels
“Covid has proven that the hospitality industry is far more resilient than many thought. The current challenges the industry is facing require new tools and technologies that help businesses adapt. Henrik and Omri, with their hotel experience and deep technical expertise, are the perfect founders to revolutionize the space. We are excited to be a part of their journey to provide total freedom of choice and complete visibility, benefiting hoteliers and suppliers alike.”
— Dafna Winocur Biran, Partner at Joule Ventures
“Reeco has built a disruptive solution that’s generating incredible excitement among veterans in the hospitality space. They’ve created a totally new way of ordering that’s a game changer for hospitality buyers. 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.”
— Dan Naftali, Owner of Net Capital Ventures
