Loop Raises $95 Million to Build AI for Supply Chain Risk Prediction

San Francisco-based startup Loop has raised $95 million in a Series C funding round. The round was led by Valor Equity Partners and the Valor Atreides AI Fund. It also saw participation from 8VC, Founders Fund, Index Ventures, and J.P. Morgan Growth Equity Partners.

The company plans to use the capital to expand its engineering team. In addition, it aims to strengthen its artificial intelligence capabilities for supply chain management.

Focus shifts from automation to prediction

Loop focuses on improving supply chain operations using artificial intelligence. Initially, the company helped businesses structure unorganized data. This includes PDFs, documents, and digital communications.

As a result, companies could automate routine tasks and identify inefficiencies. For instance, they could detect delays, cost leakages, or inventory imbalances.

However, the company is now moving beyond automation. It is building systems that can predict disruptions and recommend actions. Therefore, businesses can respond earlier instead of reacting after issues occur.

Use of multiple AI models to process data

Loop’s platform combines multiple AI models to process large volumes of data. Some of these models are developed internally, while others are sourced externally.

This approach allows the system to convert fragmented data into structured insights. Consequently, businesses gain better visibility into operations across suppliers, warehouses, and logistics networks.

Moreover, the platform integrates with enterprise systems such as ERP and transportation management software. This helps create a more complete view of supply chain activity.

Growing interest in AI-led supply chain solutions

The funding comes at a time when companies are investing in AI to manage supply chain risks. Ongoing disruptions and global uncertainty have increased the need for real-time insights.

Several startups and established firms are working in this space. They aim to automate logistics operations and modernize legacy systems. At the same time, larger players are also expanding their AI capabilities.

Therefore, competition in the segment continues to grow.

Hiring and product development remain priorities

Loop’s founders plan to allocate a significant portion of the funding toward hiring. Engineering talent remains a key requirement as the company builds more advanced systems.

The company was founded by CEO Matt McKinney and CTO Shaosu Liu, who previously worked together at Uber. They believe that recent advances in AI have accelerated their roadmap.

Earlier, they expected such capabilities to mature later in the decade. However, faster progress in AI development has allowed them to scale sooner.

Long-term goal: building a decision-making layer

Loop aims to position its platform as a decision-making layer for supply chains. Instead of only identifying problems, it seeks to guide businesses on the next steps.

This includes improving cost efficiency, reducing risks, and increasing operational stability. Over time, the company plans to extend these capabilities into broader business functions.

As supply chains become more complex, demand for predictive tools is likely to increase. Consequently, companies that adopt such systems early may gain a long-term operational advantage.