Reeco founders Henrik Shimony (left), Omri Shalev (right) (Reeco)
Reeco, an Israeli startup that offers an AI-powered procure-to-pay platform designed for the hospitality sector, has raised $15 million in Series A funding. This investment will accelerate the development of the Reeco platform and support the company’s strategic growth. Reeco’s unified system replaces cumbersome manual processes like spreadsheets, punchout systems, and GL coding, streamlining key back-of-house operations.
The platform enables users to quickly purchase from any contracted vendor, manage recipes and track real-time food costs, and automate inventory and invoicing. This Series A round follows a $10 million seed round, bringing Reeco’s total funding to $25 million.
The hospitality industry’s reliance on manual procurement and outdated systems has created a range of problems: unreliable data, fluctuating prices, poor inventory management, and strained vendor relationships. These challenges hinder operational efficiency and prevent hospitality businesses from maximizing value for their stakeholders. A modern, transformative solution is urgently needed.
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Reeco’s AI-driven procure-to-pay platform eliminates these challenges by unifying procurement and receiving, inventory, recipe management, and accounts payable into a single system to save tremendous time and costs. Users can purchase food and supplies based on real-time pricing and with one cart, integrating all their preferred suppliers. Teams can use the AI-powered smartphone app to quickly receive and audit inventory, scanning bottles for accuracy and cutting counting time by 50 percent. Food and beverage teams can build and manage recipes with the AI-powered ingredient database; they connect recipes with point-of-sale systems to reveal real-time food costs and identify cost-saving opportunities.
The accounts payable solution automates GL coding based on the property’s coding patterns and syncs with AP’s preferred accounting system. The platform brings unprecedented efficiency to every step of the process and transforms how hospitality companies manage their operations.
“This Series A funding reflects strong investor confidence in our vision to revolutionize procurement in the hospitality space,” said Henrik Shimony, co-founder and CEO of Reeco. “We’re witnessing unprecedented demand as operators recognize that modernizing their procurement and back-of-house operations is no longer optional — it’s essential to remain competitive in today’s market. With this funding, we’re enhancing our platform development to meet growing demand, expanding our technological capabilities while maintaining the exceptional service our customers rely on to transform their operations.”
In less than two years, Reeco has achieved an 800% adoption growth rate, transforming operations for hundreds of customers, from full-service resorts to select-service properties.
