Octopus Energy has unveiled a landmark standalone investment round for its cutting-edge technology company, Kraken, now valued at an impressive $8.65 billion. The funding round, spearheaded by US-based investment firm D1 Capital Partners, includes new investors such as Fidelity International, Durable Capital Partners, and a division of the Ontario Teachers' Pension Plan Board.
This strategic investment marks Kraken’s formal separation and demerger from Octopus Energy, with new and existing investors acquiring approximately $1 billion in Kraken equity to support both Kraken and Octopus. In addition, investors led by Octopus Capital are injecting another $320 million into Octopus Energy to drive innovation and growth.
Together, these investments nearly double the Octopus Energy Group’s robust balance sheet. Following the split, Octopus Energy will retain a 13.7% stake in Kraken.
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Originating within Octopus Energy Group, Kraken’s AI-powered operating system now supports over 70 million accounts worldwide through licensing partnerships with major utility companies. Over the last decade, Kraken has evolved into the world’s most advanced, data-driven utility operating system, processing more than 15 billion new data points daily.
In September, Kraken reported its contracted annual revenue had surpassed $500 million, a fourfold increase in just three years.
Greg Jackson, Founder of Octopus Energy Group, highlighted Kraken’s unique position: “Kraken stands in a class of its own when it comes to technology, capability, and scale. As an independent company with world-class investors and leadership, Kraken is primed for accelerated growth and is poised to be a true UK-founded success story."
Jackson added, “Having nurtured Kraken, Octopus remains a powerhouse of innovation and technology, now equipped with even greater strength to lead the global energy transformation. With over 10,000 employees, 11 million customers, $10 billion of generation under management, and ventures ranging from EV leasing to heat pump manufacturing, Octopus is gearing up for significant achievements in the years ahead.”
With an exceptional 4.8 out of 5 Trustpilot rating across seven countries, Octopus Energy has proven that the energy sector can be revolutionized and is ready to intensify competition against established players.
Amir Orad, CEO of Kraken, expressed enthusiasm about the transition: “Becoming an independent entity allows Kraken to focus and scale as a neutral, global operating system for utilities. Octopus Energy remains a vital innovation partner and forward-looking customer. We warmly welcome our new investors, led by D1, whose support will accelerate our role in the energy transition, strengthen global utility partnerships, and modernize the energy system worldwide. Our mission is to positively impact a billion lives within the next decade.”