Loop raises $30M to digitize logistics payments

Loop, a startup operating a payments platform for the shipping and logistics industry, has raised $30 million in total funding.

Why it matters: The company is bringing a modern payments technology stack to an industry still heavily reliant on physical paperwork.

What it does: Loop operates a payments platform that brings more transparency to shippers, carriers, and third-party logistics (3PL) firms, also while helping them get paid more quickly.

• The company digitizes operations through APIs that ingest data from logistics firms’ existing systems.
• Using natural language processing and computer vision, it then automates document capture, invoice management, and compliance into a single platform.

Between the lines: Loop claims that by digitizing logistics operations, it can reduce invoice errors from 20% to near zero and reduce the clearing time for invoices from 50 days to 3 days.

• The company takes a small percentage of all transactions that go through its platform and says it has processed over $1 billion in payment volume in the past year.

What’s next: Loop could provide working capital or advances based on invoices not yet paid.

Of note: Loop was founded by engineers, payments experts and data scientists from Uber Freight and Flexport, and funding was spread across two rounds raised before coming out of stealth.

• Its seed round was led by 8VC and Susa Ventures, while Founders Fund led its Series A financing.
• Other investors include Expa, FourMore Capital, Lineage Ventures, Flexport, Nichole Wischoff, 9Yards Capital, McVest Co, Saltwater, Mark Pincus and OEL Ventures.