Supply chain AI Loop secures $95M investment

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

Valor Equity Partners and 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 warehouse on a container ship often contain errors. Such errors can lead to unnecessary costs if not corrected. Loop has developed a family of artificial intelligence models, DUX, that can detect inaccurate supply chain invoices. It sells a series of algorithms as part of a cloud platform that automates several related tasks.

DUX is based on what Loop describes as a custom architecture developed for processing supply chain documents. According to the company, its algorithms extract not only text but also data points such as the placement of form fields and stamps. That information enables DUX to interpret the supply chain information it imports with greater accuracy.

After scanning a set of invoices, AI normalizes the information they contain and links related data points. It then uses AI agents to identify cost differences. Loop claims it enables supply chain teams to complete inventory costing audits in 2 hours instead of the several weeks normally required for this task.

The platform can accommodate not only invoices but also supply chain specific documents. Understands bills of lading, allowing a shipping company to take a customer’s merchandise on board, and tables of rates. The rate table shows a range of rates including freight charges.

In addition to catching inaccurate invoices, Loop uses documents consumed by its AI models to track the location of parcels. Supply chain teams can analyze that location information to find bottlenecks before they cause delays. Additionally, Loop says, the data revealed by its platform helps customers negotiate the best prices from shipping partners.

Another set of features promises to simplify the payment process for delivery companies. Some businesses work with more than a dozen shipping partners who don’t always use the same currency. According to Loop, its platform automates much of the payment workflow and makes it possible to request shipping discounts for early payment.

“Through the AI ​​systems they’ve built, they’re taking data that was previously fragmented and inaccessible and turning it into intelligence that improves costs, processes, and operations,” said Valor founder and CEO Antonio Gracias.

Loop will use the proceeds from its funding round to add support for other supply chain automation use cases and grow its workforce.

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