Loop raises $95M to automate supply chain back office — 30% of invoices are wrong and it's a $5B manual industry

Loop automates the supply chain back office — invoice auditing, payment processing, and general ledger coding — for large enterprises. The company has raised $95M from Valor Equity Partners, Founders Fund, Index Ventures, JPMorgan, Atreides Management, and AVC, and counts 20% of the Fortune 100 as customers.

The problem

Roughly 30% of supply chain invoices contain errors, which historically spawned a cottage industry of specialized services firms to manually adjudicate them. That market is worth $5B and is still largely run on human labor. The data problem underneath it is genuinely messy: a single shipment's weight and dimensions can exist in seven different versions across an enterprise's systems, pulled from email, EDI, API connections, spreadsheets, and PDFs. McKinney argues no one was able to organize this unstructured data at scale until LLMs made it tractable.

“Roughly 30% of invoices are wrong or have an error, so clearing of them is really painful. It happens to be a $5,000,000,000 industry alone and it's all done with human labor. LLMs presented a perfect opportunity. We work with 20% of the Fortune 100. We raised $95,000,000.”

How it works

Loop ingests data from across a customer's supplier network and uses it to audit invoices, code transactions to the right GL accounts, and remit payment to carriers. The network effect compounds over time: because Loop works across many companies using the same carriers, it can build carrier-level context — learning how a specific carrier typically bills, then propagating that pattern across all customers interacting with that carrier. McKinney says this also shortens onboarding, since Loop arrives already familiar with 95% of a new customer's suppliers rather than 2%.

What customers actually buy

Customers aren't buying an AI product. They're buying faster book close, higher error recovery rates, and quicker resolution times. McKinney says top-down AI mandates exist at some enterprises, but they're a checkbox, not the reason anyone signs a contract.

The bigger bet

US supply chain spend is $11T annually. McKinney and co-founder Mike Hovind came out of Uber Freight, where they saw the data chaos firsthand, and Loop's wedge into invoice auditing is designed to expand into adjacent use cases including compliance, planning, and procurement. The platform thesis rests on controlling the underlying data layer across the network before moving up the stack.

Loop is headquartered in San Francisco with offices in Chicago and New York. Chicago is deliberate: 30% of goods entering the US pass through the city, according to McKinney.