Loop, a cutting-edge audit and payment platform designed for the next-generation supply chain, has proudly announced its successful acquisition of a $35m Series B investment.
The latest funding round witnessed significant participation and was co-led by financial giants, J.P. Morgan Growth Equity Partners and Index Ventures. Loop’s platform has attracted major global shippers such as Great Dane, GILLIG, and JPMorgan Chase, in addition to key logistics service providers including Convoy and Loadsmart.
Diving deeper into Loop’s operations, it provides an unparalleled solution to the prevalent issues within the transportation and logistics sector, which constitutes more than 8% of the global GDP.
Age-old systems, still in use today, result in the entrapment of millions of dollars due to inefficient and manual document processing like invoices and delivery receipts. This outdated method causes about 20% of freight invoices to contain rate errors, thereby escalating costs. However, with Loop’s robust data infrastructure, clients can benefit from a comprehensive view into their expenses and simultaneously unlock potential savings. Loop’s AI system offers crucial insights ranging from linking varied documents to renegotiating contracts.
“Loop transformed the way we do business, enabling us to capture data and utilise it for better insights on decision making from how we allocate transportation spend to negotiating carrier contracts–they identified 6% in transportation savings for us,” Chuck O’Brien, VP of Aftermarket Parts at GILLIG stated. He further added, “With Loop, we went from a gut checking 30% of our invoices and manually auditing them to being fully automated.”
The inception of Loop took place in 2021, amid the global supply chain disturbances caused by the COVID-19 pandemic. Its mission is centred on enhancing margins and liquidity. By leveraging an AI-driven platform, Loop expedites financial data movements between the key players in transportation, offering improved cost visibility, reducing unnecessary expenditures, and optimising transportation budgets.
“Loop’s value proposition is clear, with an expanding customer base and over $3bn in booked total payment volume year to date,” expressed Luke Sikora, Partner at J.P. Morgan Growth Equity Partners. On a similar note, Mark Fiorentino, Partner at Index Ventures mentioned, “Loop’s infrastructure is poised to transform the way money moves through the supply chain… We’re excited to partner with them on this journey.”
Loop was conceptualised by Matt McKinney and Shaosu Liu. Drawing from their experiences at Uber Freight, the duo aimed at resolving the massive challenges faced by the legacy freight payment system, supporting the global supply chain.
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