Tank monitoring start-up raises $6m
February 20, 2019
Massachusetts start-up Tank Utility, a provider of IoT tank monitoring and logistics optimisation services, has raised $6m in an oversubscribed financing round led by Bullpen Capital.
Seed investors Energy Foundry, Blue Fog Capital and Generac also participated along with new investors Serra Ventures and Array Ventures.
Tank Utility helps delivered fuel providers optimise their last kilometre logistics by digitising the most important data point for their business, the customer's tank level. The company monitors the tanks of more than 750 fuel providers across all 50 US states and has delivered millions of dollars in logistics savings.
The funding will be used to accelerate growth, furthering the company's mission of making delivered energy as simple and convenient as purchasing a product on Amazon.
"Only four per cent of propane and heating oil tanks are monitored today but that number is growing rapidly," said Amos Epstein, CEO of Tank Utility. “Fuel suppliers with monitored tanks see not only considerable time and delivery savings but improved customer sentiment as well. This investment and the expertise of our partners will help us grow the team we need to deliver an even better experience and change the fundamental economics of this energy market."
Tank Utility provides remote monitoring devices and logistics intelligence software that gives fuel providers an accurate real-time view into the tank level for their customers. With this level of insight, fuel providers are able to eliminate up to half of logistics costs and improve customer sentiment by delivering just in time with confidence.
"Tank Utility has found a differentiated product-market fit in an underserved market," said Paul Martino, managing partner at Bullpen Capital. “Their great top-line growth is a product of sound metrics and business fundamentals and we're thrilled to be part of the vision. We have confidence in Amos and the Tank Utility team to take this investment and build on their momentum at a larger scale."
Tank Utility is actively hiring across the organisation, with open positions in product development, sales, marketing, customer success and operations at its Boston headquarters in Downtown Crossing.
"Since we invested in Tank Utility back in 2016, we have been impressed with the company's ability to consistently beat expectations," said Sara Chamberlain, Tank Utility board member and managing director at Energy Foundry. "Their expertise in data-driven products and customer-first approach will continue to make them the premier technology company in delivered fuels."
Tank Utility helps delivered fuel suppliers modernise their businesses to earn higher profit margins every year. With easy-to-use LTE tank monitoring devices connected with software and analytics, Tank Utility offers real-time and actionable insight into propane tank levels optimising operational efficiency. This eliminates wasted deliveries and increases fuel drop sizes for more profitability per delivery. In addition, it partners with fuel suppliers to improve customer engagement with a branded mobile app and value-added services that they can use to win and retain more homeowner and commercial customers while ensuring they never run out.
"We are pleased to support Tank Utility's continued growth and are excited about the next phase of expansion," said Harris Brody, partner at Blue Fog Capital. "Watching them grow the business from an idea to a major presence in just a few years has been incredible. Tank Utility has the team, product and vision to be a transformative company in IoT monitoring and analytics."