UK-based Octopus, the leading household energy supplier in the country, has sold a minority stake in its tech subsidiary Kraken for approximately $1 billion during an independent funding round. The transaction values Kraken at $8.65 billion (€7.35 billion), according to a late-day statement. The deal marks a significant step toward full independence for the platform, which uses artificial intelligence to manage the entire energy supply chain.
A multi-client platform backed by institutional investors
Already licensed by several energy suppliers including EDF Energy in the UK, Kraken’s technology is now used to manage more than 70 million customer accounts worldwide. The funding round involved existing backers alongside new investors, including D1 Capital Partners, Fidelity International, Durable Capital Partners and the Ontario Teachers’ Pension Plan. Octopus retains a 13.7% minority stake in the spin-off entity.
Toward structural autonomy and potential stock market listing
Octopus previously announced plans in September to separate Kraken from its energy distribution operations. Kraken’s independent development now allows it to operate as a standalone technology company, structurally distinct from its parent group. Its contracted revenue exceeds $500 million, driven by the expansion of international licensing agreements.
According to reports from financial media, Kraken is expected to pursue an initial public offering within one to two years, potentially in London or New York. This strategic development may also pave the way for a future listing of Octopus Energy, as the global energy sector undergoes ongoing digital transformation.
