Octopus Energy: Kraken Software Valued at £6.4bn After Stake Sale

Octopus Energy Valued at $8.65 billion as Kraken Technologies Prepares for Potential IPO

A deal to sell a minority stake in Kraken Technologies, the software division of UK energy giant Octopus Energy, has valued the business at $8.65 billion (£6.4 billion), signaling a potential path toward a public offering. the move comes as Octopus Energy seeks to fuel further innovation and expansion in the rapidly evolving energy sector.

Octopus Energy, Britain’s largest gas and electricity supplier, has sold approximately $1 billion (£740 million) of equity in Kraken to a consortium of investors. This group includes prominent global investment firms such as D1 Capital Partners, Fidelity International, and a unit of Ontario Teachers’ pension Plan.

Did you know? – Kraken’s technology is designed to handle the complexities of a modern energy grid, including renewable energy sources and smart meters, improving efficiency and reducing costs.

Funding the Future of Energy Tech

The investment will be allocated to both Octopus Energy and Kraken Technologies, though sources indicate the majority of the proceeds will bolster Octopus Energy’s operations. An additional $320 million (£237 million) will be directly invested into Octopus, spearheaded by Octopus Capital – a important existing investor – to drive “innovation and growth.”

Despite the partial sale, Octopus Energy will retain a 13.7% stake in Kraken Technologies following the transaction.The company is scheduled to release its annual results later Tuesday,providing further insight into its financial performance.

Kraken’s Rise as a Global Energy Platform

“Kraken is in a class of its own, in terms of technology, capability, and scale,” stated the founder of Octopus Energy Group. “As an self-reliant 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.”

Originally developed for internal use by Octopus, Kraken has evolved into a leading artificial intelligence (AI)-powered platform serving a diverse range of global energy retailers. Currently,the platform connects over 70 million household and business energy accounts. The spin-off is expected to accelerate Kraken’s global expansion, with speculation mounting about a potential initial public offering (IPO) in either London or New york as early as next September.

Pro tip – AI-powered platforms like Kraken can help utilities better predict energy demand, optimize grid operations, and integrate renewable energy sources more effectively.

Independence to Accelerate Growth

According to the chief executive of Kraken, becoming an independent entity will provide the company with the necessary “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 further emphasized the potential impact of the new investment, stating, “With thier backing, we can accelerate

Why: Octopus Energy sold a minority stake in Kraken Technologies to fund further innovation and expansion in the energy sector, and potentially prepare for an IPO.
Who: The deal involved Octopus Energy, Kraken Technologies, and a consortium of investors including D1 Capital Partners, Fidelity international, and Ontario Teachers’ Pension Plan.
What: A $1 billion equity sale valued Kraken Technologies at $8.65 billion. Octopus Energy retains a 13.7% stake.
How did it end?: The transaction concluded with Kraken becoming an independent company, poised for accelerated growth and a potential IPO within the next year. the investment aims to bolster both Octopus Energy and Kraken’s operations, with a focus on innovation and global expansion.