Dive Brief:

• Reeco has raised $10 million in a seed funding round led by Net Capital Ventures and Joule Ventures, with participation from Eynat Guez, CEO of Papaya Global, and other angel investors. 
• The AI-powered marketplace — which counts hotels from Hilton, Marriott International and Ramada among its customers — acts as a one-stop shop for hotel buyers, giving them access to thousands of products and matching them with an optimal supplier. 
• The technology is helping solve pandemic-related challenges, such as supply shortages, food waste and overspending on fast-moving goods. 

Dive Insight:

For many hotel organizations still grappling with the lingering effects of pandemic-related supply chain issues, Reeco could offer a streamlined way to purchase a variety of products — from food and beverage to cleaning supplies — in a cost-effective and timely manner. 

Tel Aviv, Israel-based Reeco came on the scene in spring 2020 at a time when many hotel organizations began feeling the sting of supply chain disruptions. According to an American Hotel & Lodging Association study from December 2021, 86% of hotels surveyed said they experienced a moderate to significant impact on their operations because of supply chain disruptions, and 74% said these issues were having a negative impact on business revenue. 

In past seed funding rounds in June 2021 and May 2022, Reeco raised $1.9 million and $6.2 million, respectively, according to Crunchbase data. Net Capital Ventures contributed to all three of Reeco’s funding rounds. 

With Reeco’s AI-powered marketplace, hotel buyers can choose from thousands of products and get automatically matched with as many as four suppliers from hundreds of local and national suppliers based on price, availability and delivery dates. 

“Reeco has built a disruptive solution that's generating incredible excitement among veterans in the hospitality space,” Dan Naftali, owner of Net Capital Ventures, said in a press release. “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.”

According to Reeco, buyers experience savings of 19% on average per order, and they cut time spent on placing and receiving orders by 80%. 

The startup’s growing customer base includes Playa Largo Resort & Spa by Autograph Collection, Hilton Aventura, hotel management company Shaner Hotel Group and hotels from brands including Marriott and Ramada. In 2022, it opened a headquarters in Miami.

Nick Murray, vice president of food and beverage at Shaner Hotels said, “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.”