Propel secures $21M to expand alternative fuel retail locations
Propel Fuels, a leading retailer of alternative fuels and clean mobility solutions, has closed on the initial phase of its Series D round of funding with $11 million in equity capital from existing investors Nth Power, Craton Equity Partners, and @Ventures, as well as a new investor, Gentry Venture Partners. In addition, the company has secured $10 million in debt financing from CapX Partners. With the new funding, Propel will be able to accelerate the build out of its network of stations that offer drivers the cleanest, most sustainable, domestically produced fuels on the market today.
Propel operates a growing network of stations that provide renewable fuels (Flex Fuel E85, biodiesel blends) alongside the conventional gasoline that most drivers use today. Offering a better station experience that reaches beyond fuel, Propel enables drivers to offset carbon from their fuel purchases, improve their vehicle’s fuel economy, find rideshare opportunities, tune bicycles, and recycle on the go. Propel is the only fueling company in the country to bring drivers the opportunity to offset their emissions at the pump through the company’s unique CarbonOffset program.
This year, Propel was named to Inc. Magazine’s list of the Fastest Growing Private Companies (the 17th fastest growing energy company); the 8th Fastest Growing Private Company in Silicon Valley by the Silicon Valley/San Jose Business Journal; and the 14th Fastest Growing Private Company in the Bay Area by the San Francisco Business Times.
“The continuing support of our existing investors, the new investment from Gentry, and the access to additional debt capital from CapX is a strong endorsement for our vision, our accomplishments, and team,” said Matt Horton, CEO of Propel. “This new funding, combined with grant funding from the State of California, will enable us to accelerate the build out of our alternative fuel stations across state, offering consumers true choice and a better experience at the pump.”
As part of the investment by Gentry, Thomas B. Raterman, a Partner, has joined Propel’s Board of Directors. Raterman has more than 30 years of corporate finance, investment banking, and executive management with rapidly growing entrepreneurial companies.
“We’re witnessing a revolution in transportation, whether it’s innovative new enzymes to create clean fuels, or whole new drivetrains and power systems in the vehicles themselves,” said Raterman. “Propel is creating a position as a trusted source of the most advanced fuels on the market today—no matter what type of vehicle you drive. We’re excited to help them succeed.”
Propel currently operates stations throughout California and Washington State with more than 200 stations planned for new and existing markets over the next two years. The company’s network of stations will include a mix of their traditional Clean Fuel Points (renewable fueling stations co-located with traditional fuel stations) and the new Clean Mobility Centers.