Loop, a modern audit & payment platform for the next-gen supply chain, announced it has raised a $35 million Series B, co-led by J.P. Morgan Growth Equity Partners and Index Ventures. Loop is used by global shippers including Great Dane, GILLIG, and JPMorgan Chase; and logistics service providers including Convoy and Loadsmart.
“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,” said Matt McKinney, CEO and co-founder of Loop. “We founded Loop to solve this massive problem, and this fundraise is a testament to Loop’s ability to cut costs and power profits for our customers. We’re thrilled to have the additional support of J.P. Morgan Growth Equity Partners and Index to continue building the future of the modern supply chain.”
Transportation and logistics represent more than 8% of global GDP, but throughout this movement of global goods and services, outdated systems leave millions of dollars trapped. Legacy firms still rely on manual processes where important shipping documents like invoices, bills of lading and delivery receipts are recorded by hand and poorly audited. This results in no single “source of truth” for what and when firms should pay; on average, 20% of freight invoices have rate errors, which in turn increase costs. Loop’s infrastructure and robust data platform give customers full visibility into costs — but also unlocks savings. Loop’s AI delivers insights into the impact of everything from linking disparate documents to root-cause of discrepancies to contract renegotiations.
“Loop transformed the way we do business, enabling us to capture data and utilize 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,” said Chuck O’Brien, VP of Aftermarket Parts at GILLIG, the leading manufacturer of heavy-duty transit buses in the United States. “With Loop, we went from a gut checking 30% of our invoices and manually auditing them to being fully automated.”
Loop was founded in 2021, at the height of the disruption of the global supply chain by the COVID-19 pandemic, to unlock margin and increase liquidity. With an AI-driven platform that consolidates and analyzes all transportation financial data, Loop accelerates the movement of money between shippers, carriers, and brokers by:
- Improving cost visibility: Shows true spend to reduce financial risk and operating expenses
- Cutting unnecessary spend: Automates audit and pay process to improve accuracy and increase working capital
- Optimizing transportation budgets: Uncovers strategic opportunities to enhance network operations, renegotiate with confidence, and maximize margins
- “Loop’s value proposition is clear, with an expanding customer base and over $3 billion in booked total payment volume year to date. 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,” said Luke Sikora, Partner at J.P. Morgan Growth Equity Partners. “We’re pleased to have invested in Loop, and are looking forward to supporting the company as they harness the power of AI to address tangible issues impacting the global economy.”
“Loop’s infrastructure is poised to transform the way money moves through the supply chain. In just a few years they have brought better efficiency not only to their large shipper customers, but also to the broader supply chain ecosystem. Ultimately, we invest in people, and we’ve been impressed by the strength of Matt and Shu’s vision and compelling founder-market-fit for some time. We’re excited to partner with them on this journey,” said Mark Fiorentino, Partner at Index Ventures.