Loop, an audit and payment platform for the next-gen supply chain, has announced a significant milestone with the successful closure of a $35 million Series B funding round. The round was co-led by J.P. Morgan Growth Equity Partners and Index Ventures, highlighting the growing confidence in Loop’s innovative approach to revolutionizing transportation logistics.
Founded in 2021 by former Uber and Flexport engineers Matt McKinney and Shaosu Liu, Loop has emerged as a game-changer in an industry where legacy systems often result in significant capital being trapped within the supply chain. In a world where geopolitical shifts and inflationary pressures impact global supply chains, Loop’s mission is to streamline processes and drive down costs.
McKinney, Loop’s CEO and co-founder, emphasizes the urgency of addressing challenges in the industry: “As geopolitics radically reshapes the global supply chain and consumers bear the brunt of inflation, legacy financial infrastructure is driving up costs at a critical time for the economy.”
Unleashing Capital with AI-driven Solutions
Transportation and logistics constitute over 8% of the global GDP, yet outdated systems persist, leaving millions of dollars entangled in inefficiencies. Loop’s platform offers a modern solution, leveraging artificial intelligence to provide a comprehensive view of financial data, enabling companies to navigate the complexities of the supply chain with unprecedented efficiency.
The traditional manual processes that dominate the industry, involving handwritten recording of vital shipping documents, contribute to errors and discrepancies. On average, 20% of freight invoices contain rate errors, leading to increased costs. Loop’s infrastructure addresses this by offering a single “source of truth” for payment processes.
Loop has garnered support from global shippers such as Great Dane, GILLIG, and JPMorgan Chase, as well as logistics service providers Convoy and Loadsmart. Chuck O’Brien, VP of Aftermarket Parts at GILLIG, attests to Loop’s transformative impact: “With Loop, we went from manually auditing 30% of our invoices to being fully automated, identifying 6% in transportation savings for us.”
Loop’s Threefold Approach
Loop accelerates the movement of money within the supply chain by focusing on three key areas:
- Improving Cost Visibility: Loop’s platform provides a clear understanding of true spend, reducing financial risk and operating expenses.
- Cutting Unnecessary Spend: The automation of audit and payment processes enhances accuracy, ultimately increasing working capital.
- Optimizing Transportation Budgets: Loop’s AI-driven insights uncover strategic opportunities, allowing businesses to enhance network operations, renegotiate contracts confidently, and maximize margins.
Industry Recognition and Future Prospects
Loop’s success is evident in its expanding customer base and over $3 billion in booked total payment volume year to date. The Series B funding, co-led by prominent investors J.P. Morgan Growth Equity Partners and Index Ventures, positions Loop for continued growth and innovation in reshaping the modern supply chain.
Luke Sikora, Partner at J.P. Morgan Growth Equity Partners, affirms the importance of Loop’s financial infrastructure: “From material demands to the current state of the macro environment, this modern financial infrastructure is vital for businesses that are rearchitecting their supply chains.”
Mark Fiorentino, Partner at Index Ventures, expresses excitement about Loop’s potential to transform money movement in the supply chain: “Loop’s infrastructure is poised to transform the way money moves through the supply chain.”
In just a few years, Loop has demonstrated its ability to bring efficiency to large shippers and the broader supply chain ecosystem. As the company continues its journey, supported by strategic partnerships and innovative technology, it remains at the forefront of reshaping the future of transportation logistics.
Source: LOOP