Prime Highlights:
- Kraken Technologies, the software unit of Octopus Energy, raises $1 billion and is set to become independent, marking a major growth step.
- The spinoff positions Kraken to expand its software services to more utility companies while keeping ties with Octopus Energy and Origin Energy.
Key Facts:
- Kraken Technologies’ valuation after the funding round stands at $8.65 billion.
- The company has seen its annual recurring revenue more than double over the past 18 months, supplying software to major utilities like EDF and E.ON.
Background:
British renewable energy company Octopus Energy will separate its software unit, Kraken Technologies, as part of its growth plans. Kraken recently raised $1 billion in funding, giving it a value of $8.65 billion. The spinoff is expected to take place by mid-2026, according to Origin Energy, a major stakeholder in Octopus.
Origin Energy confirmed that the investment round included participation from Daniel Sundheim’s hedge fund D1 Capital Partners and a major, unnamed Kraken customer. Origin itself will contribute $140 million as part of the process.
The separation will see Octopus Energy retain a 13.7% stake in Kraken, while Origin’s share remains at 22.7%. Origin CEO Frank Calabria said, “We believe these transactions put Octopus and Kraken in a strong position to unlock their next phase of growth, underpinned by the appropriate capital structure.” He also noted that Kraken is approaching its 100 million customer account target ahead of schedule, signaling robust demand for its services.
Kraken Technologies makes software for utility companies like EDF and E.ON. In the past 18 months, its revenue has more than doubled. Being part of Octopus Energy has helped Kraken reach more utility companies around the world.
Kraken’s CEO, Amir Orad, said the company’s focus on specialized software for utilities has attracted a strong group of investors, especially those with experience in the energy sector. After the spinoff, Kraken is expected to strengthen its offerings and become a leading software provider for utility companies.
The spinoff will let Kraken Technologies work independently while still linked to Octopus Energy and Origin Energy. Experts say this helps Kraken grow and improve its software for utility companies.
