In a landmark move for the UK's energy sector, Octopus Energy has announced a major strategic shift that will see its pioneering technology arm, Kraken, become a formally independent company.
A Billion-Dollar Valuation for Homegrown Tech
The restructuring is backed by a significant new funding round led by the prominent US investment firm, D1 Capital Partners. Other new backers include Fidelity International, Durable Capital Partners, and an arm of the Ontario Teachers' Pension Plan Board. This investment values the Kraken technology company at a staggering $8.65 billion.
New and existing investors are acquiring approximately $1 billion of Kraken equity to fund the future of both entities. In a parallel move, investors led by Octopus Capital are injecting a further $320 million directly into Octopus Energy to fuel its own innovation and growth. Collectively, these financial injections nearly double the Octopus Energy Group's balance sheet.
Kraken Steps Out on Its Own
This funding paves the way for Kraken's formal demerger from its parent company. Post-split, Octopus Energy will retain a 13.7% stake in the now-independent Kraken. Launched internally, Kraken's AI-powered operating system has grown into a global force, now contracted to serve over 70 million utility accounts worldwide through licensing deals.
The platform processes a colossal 15 billion new data points every day. It announced in September that its contracted annual revenue had surpassed $500 million, representing a four-fold growth in just three years.
Leadership Hails a "Class of Its Own"
Greg Jackson, Founder of Octopus Energy Group, praised the development, stating: "Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story."
He added that Octopus, with its 11 million customers, 10,000 staff, and diverse businesses, is now a "powerhouse of innovation" positioned to accelerate the global energy transformation.
Amir Orad, CEO of Kraken, said: "Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities... our goal being to positively impact a billion lives within a decade."
The deal signifies a major evolution for one of Britain's most disruptive energy firms, separating its customer-facing supply business from the immensely valuable technology platform that underpins it, with both now poised for accelerated global expansion.
