Tankfarm, a tech-enabled propane distribution platform, recently closed on a $23 million Series-B funding round led by a handful of prominent family offices and existing investors, the company reported.
The capital will go toward customer acquisition, continued development of Tankfarm’s patent-pending technology platform, and extending its national propane delivery footprint, which currently spans 37 states and over 400 locations.
“In the midst of a very challenging economic and fundraising environment, our investors stepped up and have put Tankfarm on a path to becoming one of the largest propane distribution companies in the U.S. market,” Andrew Heaney, Tankfarm founder and CEO, said in a news release. “It is a testament to our fantastic team, and also to the belief our investors have in our vision. We are deeply grateful to all of them.”
See also: Tankfarm makes 2023 Inc. 5000 list
Tankfarm invests in software and sensors to improve the customer experience for propane consumers, and to make deliveries more efficient and profitable. The company aims to improve the propane industry’s approach to technology, so it can begin to meet the expectations of today’s propane consumer. The $35 billion U.S. propane industry is highly fragmented and has been slow to embrace new technology, the company said.
“This really is just the beginning,” Heaney said. “Every day our technology moat gets a bit deeper, creating an increasingly durable source of competitive advantage in an industry that has traditionally underinvested in technology.”