Piston raises $7.5M for cardless fuel payments solution

Piston is making waves with its cardless, intelligent approach to fuel payments. Founded by seasoned fleet operators Vikram Sekhon and Shivam Shah, Piston has secured a total of $7.5 million in funding, with the latest seed round led by Spark Capital. This financial boost is instrumental for Piston, enabling it to scale operations and further expand its network of independent gas stations and commercial fleets across the United States.

“I was a fleet operator who was operating 120–250 trucks that were being dispatched every day,” Sekhon said. “Fueling was a major headache for us, mostly on the fraud side of things. We tried all of the cards, from traditional credit business cards to legacy fuel cards. Fraud was constant, fees were unpredictable, and we were spending a ton of time on admin reconciliation.”

Piston addresses a critical need in the fleet payments industry: eliminating fraud and excessive costs associated with traditional fuel cards. As Sekhon explained, “Fuel was our second-largest expense after payroll, and the most chaotic to manage.” Through their firsthand experiences managing fleets, Sekhon and Shah identified significant inefficiencies in existing fuel payment systems, especially concerning card fraud and retail price markups.

Piston’s solution promises to change the game. Instead of relying on traditional physical cards, Piston utilizes a secure, app-generated QR code system. This cardless approach significantly reduces fraud by tying each transaction to specific details, including vehicle, time, location, and fuel type. Drivers scan the QR code at the pump, ensuring real-time payment confirmation and transparency for fleet managers who can immediately monitor transactions. This innovation not only cuts down administrative efforts but also addresses fraudulent activities, which previously accounted for over 5% of total fuel spend, according to Sekhon.

Further, no credit card companies or banks are involved in the transaction—the payments to the fuel station come from Piston, who then invoices the fleet. This reduces latency in the transaction, allowing fleet managers to see fuel spend instantly, instead of waiting for batched transactions to be reported by a bank or credit card during the settlement or clearing process.

(Image: Piston)

The flexibility of Piston’s platform extends beyond its core technology, allowing fleet owners to establish customized business rules tailored to their specific operational needs. Fleet managers can determine spending limits, set restrictions on purchase types, and control the timing and location of fuel transactions. For example, businesses often cap individual transactions to $200 and restrict purchases exclusively to fuel, minimizing the risk of unauthorized expenses such as snacks or cash back. This level of control significantly reduces administrative burdens and ensures that fuel spend is aligned with company policies. If exceptions are necessary, drivers can send exception requests, which are routed directly to the fleet manager through a push notification, facilitating real-time decision-making and oversight.

For gas stations, particularly the 90% that are franchise-owned, Piston presents a valuable opportunity. The platform connects them directly to commercial fleet demand without the need for expensive hardware installations or third-party interference. This direct connection also allows for the negotiation of better wholesale pricing, a necessity that Sekhon emphasized. “My fuel spend of $3 million a year was paying the same as some guy in a Honda Civic—I wasn’t getting any volume-based pricing,” he noted. By integrating with Piston, gas stations can secure consistent commercial fleet volumes, thereby increasing profitability.

Currently, Piston serves over 120 fleets across more than 800 gas stations, processing an impressive $20 million in annualized transaction volume with a robust 50% month-over-month growth. This traction is partly due to Piston’s ability to offer cost-effective solutions to local fleets—hyperlocal operations such as courier and HVAC services—by optimizing their filling schedules either post-dispatch or on the way back to their base.

Strategically headquartered in Cupertino, California, with additional operations in Lehi, Utah, and Kolkata, India, Piston is actively expanding its station partner network. The company is focused on onboarding more independent fuel retailers and integrating directly into their systems to capture the missed commercial volume. This expansion will lead Piston towards becoming the default infrastructure for commercial fuel payments.

The company’s swift growth and innovative product have attracted significant attention and support from strategic investors, including Pear VC and BOND. Shravan Reddy, a partner at Pear VC, highlighted, “Vikram and Shivam identified a huge problem impacting an underserved market and we believe there is enormous opportunity. They consistently exceeded every growth target, and we’re excited to continue supporting them in this next phase.”

Piston’s impact on fleet operations is profound. By eliminating hidden fees and fraud disputes, fleet operators like Ash Kapoor of Saga Kapital Group have been able to reduce fuel spend substantially and streamline administrative processes. Kapoor shared, “Our drivers fill up faster, our accountants sleep better, and the savings drop straight to the bottom line.”

Looking forward, Piston is slated to go live with a regional chain with 1,000 stores and is operating in every time zone, keeping pace with population centers. This growth is bolstered by its recent funding, which will aid in growing its product, sales, and engineering teams.

In rethinking fuel payments, Piston not only provides a secure, efficient payment solution but also fosters a stronger connection between fleet operators and gas station owners, modernizing one of the most overlooked aspects of the mobility economy.

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