Octopus Energy Group has secured an investment that values its newly spun-off technology company Kraken at $8.65 billion (£6.43 billion).
Marking the first round of financing since the split in Septemberinvestors led by D1 Capital Partners, with new investments from Fidelity International, Sustainable Capital Partners and Ontario Teachers’ Pension Plan Board, will acquire approximately US$1 billion (£743 million) of Kraken shares to fund both Octopus and Kraken. Investors led by Octopus Capital are also injecting an additional $320 million into Octopus for innovation and growth.
Octopus retains a 13.7% stake in Kraken, which was founded in 2016 as part of the Octopus Energy Group. Kraken’s operating system, which uses AI, is contracted to serve more than 70 million accounts worldwide. It has licensing agreements with major energy companies, including EDF, E.ON NextNational Grid US, Origin Energy, Plenitude and Tokyo Gas.
The separation will allow Kraken to operate as a fully independent technology platform for utilities around the world, accelerating global adoption and deepening partnerships, while allowing Octopus Energy Group to focus on scaling its consumer, generation and clean technology businesses, the company said.
In September, Kraken achieved annual contract turnover of £293 million, quadrupling its growth in three years.
Octopus Energy Group founder Greg Jackson said Kraken will grow “even faster” as “an independent company with world-class backers and excellent leadership.”
Kraken will operate with a separate cap table, independent governance and leadership from Octopus. The company previously operated as a private entity explored the possibility of an initial public offering (IPO).
The company’s new chief financial officer, Tim Wan, led the listing of US software provider Asana in 2020. Amir Orad, appointed in August 2024, will continue as CEO of Kraken.
Orad noted that by becoming an independent company, Kraken can scale as a “neutral, global utility operating system.” This suggests it has a tie to Octopus, which beat British Gas to become the biggest Britain’s largest energy supplier in January 2025 has stopped some utilities from licensing their platform because they view it as a competitor.
