The company will also invest in top artificial intelligence (AI) talent and deepen its product and engineering capabilities, it said in a Friday (April 17) press release.
“We see every day how much pressure companies are under to manage supply chains through constant disruption, and how often critical decisions are still being made on top of fragmented data and brittle systems,” Loop CEO and Co-founder Matt McKinney said in the release. “This investment lets us expand our platform and connect the financial and operational data that our customers need to make better decisions, faster.”
Loop helps companies reduce costs, improve financial and network visibility, and gain tighter control over working capital by structuring data and automating the processes around it, according to the release. The platform is powered by its DUX family of artificial intelligence (AI) models and agents that are built for logistics and supply chains.
The company started with a focus on back-office operations, where the data is siloed and the financial impact is high, the release said.
Now, Loop is expanding its platform across supplier, trade and compliance, warehouse, procurement and inbound logistics data, as well as strengthening connections across enterprise resource planning (ERP), transportation management system (TMS), warehouse management system (WMS) and order management systems, per the release.
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Antonio Gracias, founder, CEO and chief investment officer of Valor Equity Partners, which led the funding round, said in the release that Loop’s AI systems create actionable intelligence out of data that had been fragmented and inaccessible.
“That foundation extends into other operational and financial functions, which is why Loop is positioned to become the intelligence layer of the entire supply chain,” Gracias said.
Loop was founded in 2021 by former Uber and Flexport engineers and secured $35 million in a Series B funding round in October 2023.
During an October 2023 interview with PYMNTS CEO Karen Webster, McKinney said it was taking 50 days on average in the logistics industry to clear a transaction because data was siloed on both sides, the sales order and the purchase order.
“The whole [logistics] industry is focused on the wrong problem,” McKinney said. “They’re trying to grow revenue and book business, but the back of the house is where all the opportunity lies … there is a real opportunity here to unlock liquidity by unifying the data together.”
