Reeco Raises $10 Million to Grow Hospitality Procurement Marketplace

Reeco has raised $10 million in seed funding and expanded the availability of its hospitality procurement marketplace.

The marketplace, which connects hospitality buyers and suppliers, uses artificial intelligence (AI) to match the buyer’s order to one or more optimal suppliers, Reeco said Tuesday (March 28).

“Reeco was built for the unsung heroes of hospitality,” Reeco Co-Founder and CEO Henrik Shimony said in the company’s press release. “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.”

The leisure and hospitality sector added 105,000 jobs in February, with food services and drinking places accounting for 70,000 positions and accommodating adding another 14,000, the Bureau of Labor Statistics reported on March 10.

The sector has been growing in terms of revenue as well, with consumer spending on experiences rising by double digits in February. Compared to the same month last year, consumers spent 42.7% more on lodging and 14.2% more on restaurants, according to the latest edition of Mastercard SpendingPulse.

With the Reeco marketplace, hospitality buyers select the product they need, choosing everything from food and beverage to cleaning supplies in an online store, according to the press release.

The marketplace then automatically matches their order to the optimal supplier based on price, availability and delivery dates. If dividing the order between as many as four suppliers would provide the best results, the platform will do so while still allowing the buyer to check out in one place and receive one bill, the release said.

Hilton, Marriott and Ramada are already using Reeco. After the new funding round, which was led by Net Capital Ventures and Joule Ventures, it is now generally available to other hotels as well, per the release.

“They’ve created a totally new way of ordering that’s a game changer for hospitality buyers,” Net Capital Ventures Owner Dan Naftali said of Reeco in the release. “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.”