Working Capital Fund is excited to invest in Lilo and support Nadine ElAshkar and Javier Araya Kopaitic in building a groundbreaking AI-powered procurement platform. At Working Capital, we recognize that the lack of transparency and accountability in complex, multi-tiered supply chains often results in environmental harm and human rights abuses. To address these challenges, we invest in innovative tools and solutions that help businesses make positive impacts across their supply chains. One of the key leverage points within supply chain solutions lies in procurement, a critical function that enables companies to engage with global suppliers. Our fundamental theory is that accurate and easily accessible data regarding the environmental and social performance of suppliers allows procurement dollars to reward good actors and force laggards to up their game, ultimately raising the bar for all suppliers as they work to signal ethical production to the marketplace. 

Procurement is an overwhelming challenge for most manufacturing businesses and even more for operating companies such as hotels and corporate real estate (CRE). The sheer variety and volume of supplies needed for these operators—from toiletries to linens to cleaning products—demand constant attention and negotiation with vendors. The process is labor-intensive and rife with inefficiencies, from tracking down supplier documentation to managing inventory and forecasting needs. On top of this, if the businesses commit to ethical and sustainable procurement—a growing global differentiator, it adds yet another layer of complexity, requiring procurement teams to assess the environmental and social impacts of their purchases.

Lilo is simplifying this complexity with its AI-enabled procurement platform while also solving for multiple purchase requirements, such as sustainability metrics. Founders Nadine ElAshkar, a procurement expert and two-time entrepreneur, and Javier Araya are building a company that marries cutting-edge technology with a deep understanding of the procurement landscape. By leveraging the latest advancements in artificial intelligence, Lilo automates repetitive tasks such as order creation, approval workflows, and inventory tracking. For hotel managers who once juggled manual spreadsheets and endless emails with vendors, Lilo offers a centralized, streamlined solution. The platform reduces ordering time by as much as 80% and can also help slash costs. Lilo’s traction is compelling, with both recognizable brand names and small-to-mid-sized operators speaking to a critical need in the industry for a tool of this kind. As we look to the future, Lilo’s AI-driven procurement platform is uniquely positioned to transform not just its initial markets of hospitality and CRE industries but also its adjacent sectors.

For Working Capital, what truly sets Lilo apart is its commitment to ethical and sustainable procurement. Lilo intends to integrate environmental and social data into procurement workflows. The platform can enable businesses to make responsible purchasing decisions, from carbon emissions to fair-trade certifications. We believe that standardization and expansion of this data can empower customers and businesses to make decisions that align with their unique needs. Over time, it can also generate longitudinal insights demonstrating how ethical choices yield long-term advantages—such as improved quality control and greater supply chain resilience—that short-term cost-cutting measures cannot match. As Lilo’s database grows, it has the potential to reshape the way the $15 billion hotel supply market in the U.S. approaches sustainable and ethical purchasing. We are excited to be a part of their journey.