Octopus Energy has sold a minority stake in its technology division Kraken Technologies, valuing the AI-powered software business at $8.65 billion. The deal marks a formal demerger of Kraken from its parent company and sets the stage for a potential stock market flotation by next September.
The investment round attracted a consortium led by D1 Capital Partners, alongside Fidelity International and Ontario Teachers' Pension Plan. New and existing investors acquired approximately $1 billion in Kraken equity, while Octopus Energy secured an additional $320 million for innovation and growth.
Octopus Energy will retain a 13.7 percent stake in Kraken after the split. The company originally built Kraken as an internal platform before expanding it to serve other utilities.
Global Energy Platform
Kraken operates as an artificial intelligence-powered platform that connects more than 70 million household and business energy accounts worldwide. The system processes over 15 billion data points daily and serves clients including EDF, E.On Next, TalkTalk, and National Grid US.
The company announced in September that its contracted annual revenue exceeded $500 million, representing four-fold growth over three years. A stock market listing is projected for London or New York by next September.
Independence and Expansion
Greg Jackson, founder of Octopus Energy Group, said: «Kraken is in a class of its own, in terms of technology, capability, and scale.» He added: «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.»
Jackson emphasized the benefits for Octopus Energy: «Having incubated Kraken, Octopus is a powerhouse of innovation and technology, and will now have even more horsepower to deliver the transformation of energy globally.»
Amir Orad, chief executive of Kraken, commented: «Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities, with Octopus Energy remaining a key innovation partner and forward-thinking global customer.»
He outlined ambitious growth targets: «With their backing, we can accelerate our impact on the energy transition, deepen partnerships with utilities worldwide, and help modernise the energy system at global scale – our goal being to positively impact a billion lives within a decade.»
Financial Impact
The investment round will almost double Octopus Energy Group's balance sheet, the company stated. Octopus Capital led the additional $320 million investment into the parent company.
Octopus Energy became Britain's largest gas and electricity supplier earlier this year, serving 7.7 million households. The company confirmed this year that it was among three retail energy firms not yet meeting regulator Ofgem's financial resilience targets.
Note: This article was created with Artificial Intelligence (AI).
