Octopus Energy Secures Investment for Kraken Software Division

Octopus Energy has made a significant move by selling a portion of its Kraken software division, valuing this branch at a striking $8.65 billion (£6.4 billion). This strategic decision could pave the way for a potential stock market launch in the future. The Kraken technology has played a crucial role in Octopus Energy’s achievements, streamlining processes such as customer billing, management of smart meters, electric vehicle charging, and home battery use, thereby making the consumption of renewable energy more affordable.

The Investment and New Partnerships

In the recent stake sale, new investors, including Fidelity International and the Ontario Teachers’ Pension Plan Board, have joined existing shareholders to purchase a $1 billion stake in the Kraken business. Following this transaction, Octopus retains a 13.7% share in Kraken. This move aligns with Octopus’s previously announced plans to spin off the division into a standalone company.

Insights from Octopus Energy’s Founder

Octopus founder Greg Jackson expressed his excitement about this development, stating, “Kraken is in a class of its own, in terms of technology, capability, and scale. 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.”

Octopus Energy’s Triumph in the Market

Octopus Energy has established itself as the largest household energy supplier in Britain, a title it claimed in January after overtaking British Gas, which had dominated the sector for nearly 40 years since its privatization under Margaret Thatcher. Founded in 2015 by Jackson, Octopus emerged from a governmental initiative aimed at diversifying the energy market beyond the “big six” suppliers. Its success is significantly attributed to the Kraken software, which enables the company to offer competitive tariffs that capitalize on real-time electricity price changes, ultimately reducing bills for consumers.

Global Reach of Kraken

The impact of Kraken extends beyond the UK, as the software is also utilized by various energy suppliers around the world. Notable companies include E.ON, EDF, and Good Energy in the UK, along with Tokyo Gas in Japan and Origin Energy in Australia.

Conclusion

With the investment in Kraken, Octopus Energy is poised for accelerated growth and innovation in the energy sector. This strategic move not only highlights the value of its technology but also reinforces its position as a leader in providing renewable energy solutions.

• Octopus Energy has sold a stake in its Kraken division, valuing it at $8.65 billion.
• New investors such as Fidelity International have joined to acquire a $1 billion stake.
• Kraken technology streamlines energy management, enhancing customer experience.
• Octopus Energy is now the largest household energy supplier in the UK, surpassing British Gas.