Octopus Energy Group has announced a standalone investment round for its technology business Kraken, ahead of a planned demerger. The transaction will result in Kraken operating as an independent technology platform serving utility customers globally.
The funding round is led by D1 Capital Partners, with participation from new investors including Fidelity International, Durable Capital Partners and Ontario Teachers’ Pension Plan Board through Teachers’ Venture Growth. Existing investors in Octopus Energy Group will continue to support both businesses following the separation.
As part of the transaction, new and existing investors are acquiring approximately $1bn of equity in Kraken. Investors led by Octopus Capital are also providing a further $320m to Octopus Energy Group to support innovation and growth. After completion of the spin-out, Octopus Energy Group will retain a 13.7% stake in Kraken.
Kraken was developed within Octopus Energy Group and provides an artificial intelligence-based operating system for utilities. The platform is contracted to serve more than 70 million customer accounts worldwide under licensing agreements with multiple energy companies. According to the company, the system processes more than 15 billion new data points per day.
Following the demerger, Kraken will operate with a separate ownership structure, independent governance and its own leadership team.
