Supply chain AI startup Loop secures $95 million investment

Loop Payments Inc. today announced that it has raised $95 million in funding to upgrade its supply chain optimization platform.

Valor Equity Partners and the Valor Atreides AI Fund led the Series C round. They were joined by several other institutional backers, including JP Morgan Growth Equity Partners.

Invoices that change hands when a company orders goods from a supplier or reserves space on a container ship often contain errors. Such errors can result in unnecessary costs if not corrected. Loop has developed a family of artificial intelligence models, DUX, that can detect inaccurate supply chain invoices. It sells the series of algorithms as part of a cloud platform that also automates several related tasks.

DUX is based on what Loop describes as a custom architecture optimized for processing physical supply chain documents. According to the company, its algorithms extract not only text but also data points such as the positioning of form fields and stamps. These details allow DUX to interpret the supply chain information it ingests more accurately.

After scanning a set of invoices, the AI ​​normalizes the information they contain into a standardized form and connects the associated data points. It then uses AI agents to identify cost gaps. Loop claims it allows supply chain teams to complete transportation spend audits in 2 hours instead of the several weeks typically required for this task.

The platform can ingest not only invoices but also more specialized supply chain documents. It includes bills of lading, which acknowledge that a shipping company has shipped a customer’s merchandise, as well as rate schedules. A rate table lists the many pricing parameters considered in freight transportation invoices.

In addition to detecting inaccurate invoices, Loop uses documents ingested by its AI models to track the location of packages. Supply chain teams can analyze this location information to detect bottlenecks in shipments before they cause delays. Additionally, Loop adds, the data provided by its platform helps customers negotiate more preferred rates from shipping partners.

Another set of features promises to streamline the payment process for delivery companies. Some companies work with more than dozens of shipping partners who don’t always use the same currency. According to Loop, its platform automates much of the billing workflow and allows you to request shipping discounts in exchange for paying early.

“Through the AI ​​systems they have built, they transform previously fragmented and inaccessible data into insights that improve costs, processes and working capital,” said Valor founder and CEO Antonio Gracias.

Loop will use proceeds from its funding round to add support for more supply chain automation use cases and increase its headcount.

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