Purchasing is one of the most difficult challenges facing hoteliers. An AI-powered procure-to-pay platform designed for the hospitality industry—designed with help from a former hotelier—has just received funding that it says will help it continue to make the process easier for hoteliers.

Reeco has successfully raised $15 million in Series A funding, which already follows a $10-million seed round, bringing the total funding raised to $25 million.

“We often see management companies investing heavily in front-of-house technology to enhance the guest experience and drive repeat business and revenues,” said Henrik Shimony, cofounder/ CEO, Reeco, and a former hotelier. “While this focus is important, back-of-house operations have been frozen in time, which keeps hoteliers from addressing one of their biggest revenue leaks and blind spots: purchasing.”

The Reeco platform helps hospitality businesses streamline their back-of-house operations by eliminating reliance on manual systems like Excel, punchout catalogs and GL coding, according to the company. Its unified system integrates key functions such as procurement, inventory management, recipe tracking and accounts payable, enabling users to make purchases from any contracted vendor in just a few clicks. Additionally, the platform automates inventory audits and invoicing, tracks real-time food costs and simplifies recipe management.

Shimony didn’t believe it was possible for a platform like this to exist. “Before Reeco, I believed this industry challenge was too complex to solve,” he said. “Omri [Shalev, co-founder/CTO, Reeco] showed me that with the right technology, anything is possible. This funding enables Reeco to bring in game-changing talent to help educate the industry that pen and paper is no longer a viable option. To thrive, not just survive, embracing innovation is essential.”

The Series A round was led by Aleph VC, with participation from Net Capital Ventures and Joule Ventures. The funds will be used for research and development; customer acquisition; scaling sales and marketing efforts; and launching new platform features.

“Reeco’s team is not only charismatic but also brings deep expertise in the hospitality sector,” said Tomer Diari, general partner, Aleph. “The company has already demonstrated strong product-market fit and is poised to transform one of the largest sectors in the economy. We are excited to partner with them and support their growth.”

Reeco’s platform allows users to purchase food and supplies based on live pricing from their preferred vendors; manage inventory through an AI-powered app; and generate real-time food cost insights by linking recipes to point-of-sale systems. The system also automates accounts payable and syncs with the property’s accounting software, eliminating manual data entry and reducing errors.

The hospitality industry has traditionally relied on outdated, manual procurement processes, leading to challenges such as unreliable data, volatile pricing and inefficient inventory management, according to the company. Reeco addresses these issues by providing a single platform that consolidates procurement, receiving, inventory, recipe management and accounts payable functions. This integration reduces time and costs, simplifies operations and helps hoteliers gain real-time insights into their purchasing and operational activities.

“The hospitality industry has waited decades for meaningful technological advancements in back-of-house operations,” said Shalev. “Over the past year, we’ve made massive leaps in modernizing purchasing, receiving, inventory audits and accounts payable. By consolidating all critical data into our system, we provide hotel operators with a complete, data-driven view for making faster, more accurate decisions. This year, we’re focused on elevating our platform with all-new AI use cases and expanding integrations with key industry partners.”

In less than two years, Reeco reports an 800% adoption growth rate and is now helping hundreds of customers, ranging from luxury resorts to select-service hotels, improve operational efficiency and reduce costs.

“Before Reeco, I spent over 20 years managing a disorganized, time-consuming procurement process using Excel, calls to suppliers and email tracking,” said Brian Archibald, executive chef, Playa Largo Resort & Spa. “Reeco has transformed how we manage procurement, inventory auditing and recipe management—all in one dependable, customized platform. It saves my team significant time and money, allowing us to focus on creativity instead of vendor management.”

Hotel operators such as Vision Hospitality, OTH Hotels Resorts and Scarlett Hotel Group have also seen improvements in purchasing, housekeeping, food and beverage, and maintenance operations after adopting the platform.

“Reeco has revolutionized our accounts payable process, saving us both labor and operating costs,” said Arlene McCullough, SVP, accounting, Vision Hospitality Group. “With Reeco, GL coding is automated, and we now have real-time visibility into our spending, at the property and department level. This technology has improved efficiencies and increased margins across our portfolio. In today’s competitive market, Reeco is essential.”

When asked about Reeco’s target market, Shimony explained, “We are a two-sided platform built to serve both the demand and supply sides of the hospitality industry. On the demand side, our customers include management companies overseeing multiple brands such as Marriott, Hilton, IHG and Hyatt—spanning both full- and select-service properties—as well as independently owned hotels. These businesses rely on our platform to streamline their procure-to-pay process flow. Whether you’re managing a small hotel or a large resort, having real-time visibility into spending is essential for staying efficient and competitive.”

He continued, “On the supply side, we partner with broad-line distributors, local and specialty item suppliers, GPOs and other essential players who are the backbone of the hospitality industry. Without these suppliers and GPOs, the industry could not operate as effectively as it does today. Our goal is to bridge the gap between buyers and suppliers, fostering stronger communication and partnerships to foster greater collaboration and shared success.”

Looking ahead, Shalev highlighted Reeco’s plans to continue driving innovation and support the industry’s modernization: “Many hospitality providers are struggling to do more with less; this year, we plan to fuel conversations in the industry on how to modernize operations with technology to drive profitability and help teams thrive. Operators deserve an intuitive platform that integrates with their tech stack to deliver compounded value. Towards that end, a key initiative is to recruit top talent in hospitality and tech to continue creating transformative solutions.”

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