Octopus spins off its Kraken tech platform, now worth more than USD 8 billion
The energy company sold the subsidiary to a group of investors: D1 Capital, the giant Fidelity and the Ontario Teachers pension fund
Octopus Energy, a UK-based consumer electricity retailer with a presence in Italy, announced late today a first independent investment round for its world-leading technology company, Kraken. The financing is led by D1 Capital Partners, a leading global investment firm, joined by new investors including Fidelity International, Durable Capital Partners and Ontario Teachers' Pension, through its innovative companies division.
The new corporate structure
Current investors in Octopus Energy Group, founded by Greg Jackson, continue to believe in the group, supporting both Octopus and Kraken in their next phase of growth. In this first round of financing, new and existing investors will acquire approximately $1 billion in equity from Kraken to fund both companies; in addition, a group of investors led by Octopus Capital will inject an additional $320 million into Octopus to support
innovation and growth. Altogether, these transactions nearly doubled Octopus Energy Group's already strong balance sheet; after the spinoff, Octopus will retain a 13.7% stake in Kraken.
The AI for Energy Companies
Created within the Octopus Energy Group, Kraken is now an operating system with built-in artificial intelligence that, through licensing agreements with major utilities, serves over 70 million customers worldwide. Over the past decade, Kraken has become the world's most advanced and proven data-driven operating system for utilities, processing over 15 billion new data points per day. Its annual contracted revenues recently exceeded $500 million, quadrupling in just three years. The demerger will enable Kraken to operate as a fully independent technology platform for utilities around the world, accelerating global adoption and strengthening partnerships; at the same time, it will allow Octopus Energy Group to focus on growing its retail, manufacturing, and clean technology businesses. Following the demerger, Kraken will operate with an independent capitalisation table and management.
