Kraken valued at £6.4 billion after latest Octopus Group investment round

Octopus Energy Group has secured investment that values its newly spun-out technology company, Kraken, at US$8.65 billion (£6.43 billion).

Marking the first funding round since the demerger in September, investors led by D1 Capital Partners, with new investments from Fidelity International, Durable Capital Partners and Ontario Teachers’ Pension Plan Board, will acquire about US$1 billion (£743 million) of Kraken equity to fund both Octopus and Kraken. Investors led by Octopus Capital are also injecting a further $320m into Octopus for innovation and growth.

Octopus is retaining 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 over 70 million accounts globally. It has licensing deals with energy majors including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas.

The demerger enables Kraken to operate as a fully independent technology platform for utilities worldwide, 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 hit £293 million annual contracted revenue, quadrupling its growth in three years.

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Founder of Octopus Energy Group Greg Jackson said that Kraken will grow “even faster” as “an independent company with world-class backers and outstanding leadership”. 

Kraken will operate with a separate cap table, independent governance and leadership from Octopus. Previously operating as a private entity, the company has explored the possibility of an Initial Public Offering (IPO).

The company’s new chief financial officer, Tim Wan, led US software provider Asana’s listing in 2020. Amir Orad, appointed in August 2024, will stay on as Kraken’s CEO.

Orad noted that becoming an independent company allows Kraken to scale as a “neutral, global operating system for utilities”. This suggests that its affiliation with Octopus, which beat British Gas to become the UK’s largest energy supplier in January 2025, has prevented some utilities from licensing its platform, viewing it as a competitor.