$10M For Startup That Cuts Hotels’ Costs
An Israeli startup that streamlines supply-buying for the hospitality sector has raised $10 million.
Reeco lets hotels, theme parks, tourism agencies and bars order thousands of cut-price products, from food and beverages to cleaning supplies. The Ramada and Marriott hotel chains use its service.
Buyers select the products they need, and their order is automatically matched with the optimal supplier from hundreds of local and national suppliers, based on price, availability, and delivery dates.
Reeco can divide an order between as many as four suppliers to ensure full availability of products at the lowest prices, while allowing buyers to check out in one place and receive a single unified bill.
This results in savings of 19 percent on average per order while cutting time spent on placing and receiving orders by 80 percent.
The COVID-19 pandemic caused supply chain issues within the hospitality industry, with 86 percent of hoteliers reporting that it impacted their operations. The industry continues to face challenges with procurement due to inflation and ongoing supply chain shortages.
“Reeco was built for the unsung heroes of hospitality,” said Henrik Shimony, Reeco CEO.
“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.”
The funding was led by Net Capital Ventures and Joule Ventures with participation from other investors.
Reeco was founded in 2020, and is headquartered in Tel Aviv, and in Miami, Florida.