Mobile gas-pay company gets $40M

P97 Networks, a Houston startup that provides a platform for consumers to pay for gasoline with their smartphones, said it has raised $40 million to fuel further growth.

The Austin investment firm Peak Rock capital is providing a type of loan, known as venture debt financing, that is designed for earlystage companies with high-growth potential. The mobile payments company has already experienced explosive growth, said Donald Frieden, chief executive officer of P97.

He said it has doubled the number of retail sites on its Mobility Services platform over the past 18 months. More than 60,000 convenience stores with gas pumps accept its payment apps, including retail locations operated by four major energy companies, such as Phillips 66 of Houston, Frieden said.

“We will use this new capital to fund P97’s high-growth initiatives, which include accelerating user adoption,” he said. “With this new capital, we will continue to grow our install base and strategic partnerships.”

Not only can customers with P97 pay for their gas or other fuel with their phones, they also can use it to buy items such as chips and sports drinks in convenience stores. The app includes features that allow users to search for fuel stations nearby and gives them directions. Payments are tokenized, meaning customers’ credit card information is replaced with a nonsensitive substitute, providing an extra layer of security against fraud or theft.

Nick Basso, managing director at Peak Rock Capital, said P97 has become the industry standard for mobile fuel and convenience-store payments.

“We are excited by the compelling opportunities ahead for P97 as the market for mobile payment solutions continues to expand and gain broad adoption by consumers,” he said.