November 03, 2022
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1 big thing: Modern payments for an old school industry
Loop, a startup operating a payments platform for the shipping and logistics industry, has raised $30 million in total funding, Ryan writes.
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, 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 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.