# Kraken Technologies Set to Launch as Self-reliant Entity After $8.65 Billion Valuation
A new era is dawning for energy technology as Kraken Technologies, the AI-powered platform behind Octopus Energy, prepares to operate as a standalone company following a significant investment deal. The move, fueled by a $1 billion stake sale to investors led by New York-based D1 Capital Partners, values Kraken at $8.65 billion (£6.4 billion) and sets the stage for a potential public offering.
Octopus Energy Spins Off Tech Arm for Growth
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The decision to demerge Kraken from its parent company, Octopus Energy, Britain’s largest gas and electricity supplier, reflects the platform’s expanding reach and potential. Initially developed to streamline operations for Octopus, Kraken has rapidly evolved into a sought-after solution for utilities worldwide. According to a company release, the majority of the $1 billion investment will bolster Octopus Energy’s expansion plans, with the remaining funds allocated to Kraken’s independent growth.
AI-Driven Platform Powers global Energy Management
Kraken’s core strength lies in its application of artificial intelligence to automate critical functions for energy companies. These include customer service,billing,and complex energy management systems that incentivize consumers to reduce consumption during peak demand. The platform currently manages a staggering 70 million household and business accounts globally,serving clients such as EDF,E.On Next, TalkTalk, and National Grid US.
IPO on the Horizon: London or New York?
Octopus founder and chief executive Greg Jackson indicated a strong possibility of an initial public offering (IPO) for kraken “in the medium term.” The potential listing location remains open, with both London and the United States under consideration. “One thing about Kraken is we’ve got this global investor base… and so really the stock exchanges have got to kind of show why they are the right one for business,” Jackson stated. A London listing would represent a significant win for the UK market, reversing a recent trend of companies opting to float in the US.
Independence to Fuel innovation
Kraken’s chief executive,Amir Orad,emphasized that the spinoff will grant the company the “focus and freedom” needed to accelerate growth. Previously, the company faced challenges in securing contracts with competitors of Octopus Energy. Operating independently will remove this barrier and unlock new opportunities.
UK Commitment Remains Strong
Despite the global ambitions, Octopus Energy remains committed to its UK roots. Jackson confirmed the company’s headquarters will remain in the UK, and expressed a preference for a London listing if the conditions are favorable. “If London can be the right place to list,I would love that,” he said.”But it’s down to be where you’re going to get the most investor support and the most support from the stock exchange.” The company has already created 12,000 jobs in the UK, with 1,500 directly attributable to Kraken.
Financial Resilience and Future Outlook
The demerger comes as Octopus Energy continues its impressive growth trajectory, having surpassed British Gas as the UK’s largest energy supplier, now serving 7.7 million households. However, the company acknowledged earlier this year that it was among a small number of retail energy firms that had not yet fully met regulator Ofgem’s financial resilience targets. The recent cash injection is expected to “almost double Octopus Energy Group’s already strong balance sheet,” as the company
