That green energy app you use is becoming its own billion-dollar beast. Octopus Energy is cutting its tech arm Kraken loose in a massive split, valuing the platform at a monster 8.65 billion dollars. This follows a fresh one billion dollar investment led by D1 Capital Partners, with other big money players like Fidelity and the Ontario Teachers' Pension Plan throwing in. The whole point is to let Kraken, originally built in-house, operate as a neutral tech provider for other power companies worldwide, while Octopus itself focuses on selling power and building clean tech stuff. As part of this financial gymnastics, new investors are grabbing about a billion in Kraken equity, and another 320 million is being pumped directly into Octopus Energy Group for its own projects. Post-split, Octopus will still own a 13.7 percent piece of Kraken.
The platform itself is no joke, handling data for over 70 million customer accounts globally for various utility companies, chewing through more than 15 billion data points daily. Its contracted yearly revenue has blown past 500 million, which is four times what it was just three years ago. Greg Jackson, who started Octopus, called the spin-off a natural move, saying Kraken is in its own league tech-wise and will grow faster on its own. He also pointed out that Octopus is still huge, with millions of customers and billions in assets. Kraken's CEO Amir Orad said independence means they can really push for global use, aiming to affect a billion people in ten years. An investor from D1 Capital noted the platform's growth and how utilities stick with it as reasons for backing the deal.
Once the separation is final, Kraken will run with its own leadership and board, marking one of the biggest tech spin-outs to come from that side of the pond. It underscores how utilities everywhere are desperate for modern software to handle bills, customer service, and the grid, especially as the world tries to transition to cleaner energy. The whole deal basically sets up two separate giants: one a pure-play energy retailer and generator, the other a white-label tech backbone for the entire industry.
The platform itself is no joke, handling data for over 70 million customer accounts globally for various utility companies, chewing through more than 15 billion data points daily. Its contracted yearly revenue has blown past 500 million, which is four times what it was just three years ago. Greg Jackson, who started Octopus, called the spin-off a natural move, saying Kraken is in its own league tech-wise and will grow faster on its own. He also pointed out that Octopus is still huge, with millions of customers and billions in assets. Kraken's CEO Amir Orad said independence means they can really push for global use, aiming to affect a billion people in ten years. An investor from D1 Capital noted the platform's growth and how utilities stick with it as reasons for backing the deal.
Once the separation is final, Kraken will run with its own leadership and board, marking one of the biggest tech spin-outs to come from that side of the pond. It underscores how utilities everywhere are desperate for modern software to handle bills, customer service, and the grid, especially as the world tries to transition to cleaner energy. The whole deal basically sets up two separate giants: one a pure-play energy retailer and generator, the other a white-label tech backbone for the entire industry.
