Loop, a transportation logistics startup, has secured $35 million in a Series B funding round to grow its modern audit and payment platform for the supply chain.
The company will use the new funding to continue building its solutions for the “next-gen supply chain,” Loop said in a Tuesday (Oct. 3) press release.
Founded in 2021 by former Uber and Flexport engineers, Loop offers a robust data platform and infrastructure that provides customers with full visibility into costs and potential savings, according to the release. Leveraging artificial intelligence (AI), Loop’s platform delivers insights into various aspects of the supply chain, from linking disparate documents to identifying root causes of discrepancies and facilitating contract renegotiations.
These capabilities aim to solve the transportation and logistics industry’s outdated systems and manual processes that have resulted in significant amounts of money being trapped in the supply chain, the release said. Legacy firms still rely on manual recording and poor auditing of crucial shipping documents, leading to errors and increased costs. In fact, approximately 20% of freight invoices contain rate errors due to the lack of a single “source of truth.”
Recognizing the need to unlock margin and increase liquidity during challenging times, Loop developed its AI-driven platform that consolidates and analyzes transportation financial data, per the release. This platform accelerates the movement of money between shippers, carriers and brokers by improving cost visibility, automating audits and payments, and optimizing transportation budgets.
Loop’s latest funding round was co-led by J.P. Morgan Growth Equity Partners and Index Ventures, according to the release.
Luke Sikora, partner at J.P. Morgan Growth Equity Partners, said in the release: “From material demands to the current state of the macro environment, this modern financial structure is vital for businesses that are rearchitecting their supply chains.”
Mark Fiorentino, partner at Index Ventures, added: “Loop’s infrastructure is poised to transform the way money moves through the supply chain.”
PYMNTS Intelligence has found that retail and manufacturing companies are investing in digital technology to improve procurement operations and limit business disruptions caused by future supply chain breakdowns.
Many of these companies are focusing on improving the functions for supplier data, such as real-time inventory information and supply chain analytics, according to “Digital Payments: Modernizing Procurement Processes,” a PYMNTS and Corcentric collaboration.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More