Loop, a San Fransciso-based shipping and logistics payments platform, has raised a total of $30m through seed and Series A funding round and exited stealth.
According to a report from Freight Waves, the Series A round, which closed earlier this year, was led by Founders Fund.
The round also saw participation from usa, 8VC Capital and Flexport. In addition, the firm is backed by Maersk, Lineage Logistics and Uber co-founder Garrett Camp.
Loop is on a mission to simplify logistics payments.
To do this, Loop uses AI and machine learning to digitise contracts and other transactional documents like bills of lading and inspection tickets. Built in-house, the AI doesn’t use optical character recognition. Rather, it leverages a combination of natural language processing and computer vision, which allows the system to adapt to any template.
McKinney and co-founder Shaosu Liu were two of the architects behind Uber Freight. Shortly after leaving the company, they founded Loop to address the logistics payment problems they witnessed firsthand.
The company said it plans to use the funding to scale up its business, which handled over $1bnin payment volume in its first year.
McKinney said, “We have the best engineering team of any startup in the world right now. And I’m very fortunate, because I don’t think if I were to apply for a job with Loop today, I’d be able to get hired.â€
In addition to scaling the business, McKinney said he plans to use the fresh funding to grow Loop’s engineering team and attract top talent in other areas. That, he believes, is key to making the company stand out among the sea of digital payments firms taking over the FreightTech space.
“About 20% of all invoices today have an exception or an error. With Loop, we’re taking that down to zero,†he added.
Flexe, the programmatic logistics leader, recently raised $119m in Series D funding at a $1bn post-money valuation.
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