Octopus Energy to spinoff AI unit Kraken at $8.65 billion valuation
Octopus Energy branded electric vehicles are parked outside a modern suburban home on March 19, 2025 in Folkestone, United Kingdom. The house has solar panels on its roof, highlighting the commitment to renewable energy. The scene represents the growing adoption of sustainable energy solutions; Octopus Energy plays an important role in promoting electric mobility and solar energy integration. (Photo: Andrew Aitchison/in pictures via Getty Images)
Andrew Aitchison | In pictures | Getty Images
British renewable energy startup Octopus Energy has launched its AI technology unit Kraken Technologies, laying the groundwork for a potential IPO.
Origin Energy, which has a large stake in Octopus, made a statement. expression It was announced late Monday that Octopus had raised $1 billion in its first independent financing round, valuing the business at $8.65 billion. Origin said the funding round paves the way for the spinoff, and Octopus aims to spin off by mid-2026.
In the statement, it was stated that there was a “major Kraken customer”, which he did not name, and that Daniel Sundheim’s hedge fund D1 Capital Partners was involved in the investment round. Origin will also invest $140 million as part of the process.
“By signing this major new customer, Kraken is rapidly approaching its 100 million customer account goal, well ahead of schedule,” said Origin CEO Frank Calabria.
Octopus Energy will retain a 13.7% stake in Kraken following the split, while Origin’s stake in Kraken will remain at 22.7%.
“We believe these transactions place Octopus and Kraken in a strong position to unlock the next phase of growth, supported by appropriate capital structure,” Calabria added.
Kraken provides energy software to utility companies including EDF and E.ON. According to Origin Energy, its contracted annual recurring revenue has more than doubled in the last 18 months.
Earlier this year, Kraken CEO Amir Orad told CNBC’s “Squawk Box Europe” that the company has a “very strong investor base” focused on energy and utilities.
Kraken enjoyed the benefits of belonging to Octopus; A growing number of energy companies have licensed its technology, turning the company into what Orad describes as “the modern operating system for utilities.”
When asked about a public listing in September, Orad told CNBC that “the opportunity is significant” but that Kraken should focus on being a pure software company.
“However, over time, we expect to get more pure software to long-term, late-stage investors. Today, we have a very strong investor base focused on energy and utilities. As the years go by… we expect this to evolve to become more software focused.” [separation]” he said.
— CNBC’s Domi Suskova contributed to this report.
