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Loop raises $30M to digitize logistics payments

Illustration of a giant freight ship leaving a wake in the shape of a dollar sign.

Illustration: Sarah Grillo/Axios

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.
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