Announcing our $35M Series B from JP Morgan and Index.
Matt & Shu
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5 minutes to read
Today, we’re excited to announce that we’ve raised $35 million from J.P. Morgan Growth Equity Partners and Index Ventures to continue executing on our vision of unlocking profit in the supply chain. We’re proud of what our customers have achieved so far – and humbled by the endorsement this funding represents. But we’re just getting started.
Friction → higher costs
We founded Loop after hearing the same pain point again and again: transportation invoiced and expected costs rarely matched.
This is because more than 20 percent of invoices have some kind of error. As a result, payables are often outstanding for more than 50 days as teams investigate discrepancies. This friction means less working capital for every supply chain stakeholder.
Complex contracts, numerous documents, and manual workflows in transportation payments lead to errors, inefficiencies, and disconnected data – a.k.a. reconciliation hell. This mess means unnecessary losses due to limited visibility, legacy decision-making processes, and manual workflows.
So companies are subject to increased risk, higher costs, and lower profits. Ultimately, these problems become tariffs levied on consumers by increasing the price of goods sold.
Bad data leads to bad decisions and missed opportunities
To try and combat this friction companies hire large operational teams that attempt to reconcile and audit every invoice. But, these manual workflows lead to overpayments, while expensive operational teams cut into profits.
Worst of all, without a complete view of spend and the ability to analyze it, companies miss strategic opportunities because they make decisions in the dark. They are left to guessing when trying to improve network operations, renegotiate with confidence, and maximize their profit.
This chain of events has only gotten worse in the last five years, with Covid forcing the move from paper to digital; e-commerce leaping forward a decade; and geopolitical issues coming to the fore.
While transportation and logistics leaders have adapted swiftly to many of these structural shifts – standing up and rearchitecting systems to move goods and services – the movement of money between supply chain stakeholders has fallen behind.
Better data, better insights, more profit.
This is fundamentally a data problem. We built Loop to help shippers improve financial decisions, eliminate unnecessary costs, and optimize transportation spend.
We do this with three core components of our AI-driven platform:
Shipment data centralization
Audit and pay automation
Transportation spend intelligence
Shipment data centralization reduces risk.
To ensure high-quality decisions across financial and transportation strategies, companies must understand the fundamental units of these operations. That all comes down to shipment and spend data.
Loop’s homegrown AI seamlessly handles all of your data formats (EDI, PDF, email, CSV, and more) across your network. Once Loop has access to your data, our platform executes three core use cases:
Digitize shipment data: Store any document type from any system to create a digital repository for all shipment data.
Link shipment data: Standardize, assign, and link all shipment data across carriers and documents to ensure consistency and accuracy.
Analyze shipment data: Seamlessly search, explore, and export enriched data across carriers and geos. Review in aggregate and at the line-item level to identify trends, patterns, and anomalies.
Centralized data enables businesses to understand baselines and improve performance.
Before Loop, Great Dane, a leading manufacturer of commercial transportation equipment, lacked visibility into their transportation spend per carrier. This made it difficult to make informed decisions. Now, with Loop’s centralized data, Great Dane can drill down on spend at the network, carrier, accessorial, and invoice levels. This granularity empowers them to flag issues in real time and reduces their risk of overpayment.
Complete spend visibility is a crucial component of fundamental business operations. Companies need this comprehensive view to accurately forecast and plan.
Audit and payment automation eliminates unnecessary costs
Once Loop helps our customers better understand their costs and identify discrepancies, our platform streamlines operational excellence by helping companies define their desired business rules to automate three core workflows:
Understand invoice issues: Discover and analyze discrepancies between invoiced and expected costs to determine the root cause of the error(s).
Automate exception management: Identify and resolve missing documents, mismatched rates, and unexpected accessorials.
Maximize finance ops: Automate cost allocation by accounting rules, scheduling, release, and aging of payments.
Loop is a vital time saver for Loadsmart, a leading freight technology provider and digital freight broker. Loop’s platform automates 90% of Loadsmart's audit workflow. Now Loadsmart's team only needs to review invoices with discrepancies, preventing overpayments and ensuring fast, accurate payments to carriers.
Most leaders are sitting on a treasure chest of data but do not know how to use it. To succeed, companies must turn their supply chain data into a competitive differentiator. That is where Loop’s AI-driven transportation spend intelligence comes in.
Loop’s transportation spend intelligence enables three core optimization drivers:
Run scenario planning: Simulate different network scenarios to identify the most cost-effective and efficient options.
Monitor carrier performance: Proactively surface insights to improve carrier performance and negotiate more favorable contracts.
Monetize payables: Increase working capital by leveraging Quickpay, a self-funded or JP Morgan-funded dynamic discounting solution.
“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's platform surfaces transportation and financial insights to optimize supply chains. Now customers can transform their supply chain from a cost center into a competitive advantage while optimizing capital and enhancing margins.
Unlock profit trapped in your supply chain
Since our launch in 2021, we’ve been working to solve major customer pain points. We are so grateful to have partnered with global leaders, including JPM, Convoy, and more. We’re excited to continue to innovate and drive more value for every stakeholder in the supply chain.
We are building the world's largest transportation data repository – enabling us to feed more insights into our models and unlock more value for participants across the value chain.
