Octopus Energy, the UK’s largest household gas and electricity supplier, secured $1 billion in Kraken’s first standalone funding round, valuing the company at $8.65 billion. This is the first external capital raised directly by the platform and marks its independence from Octopus Energy back in 2025.
The funding round was led by D1 Capital Partners, joined by Fidelity International, Durable Capital Partners, and Ontario Teachers’ Pension Plan Board through Teachers’ Venture Growth. Existing Octopus Energy investors also participated.
A platform that outgrew its original role
Kraken began life as an internal tool designed to fix the inefficiencies of running a modern energy supplier. Over time, its capabilities expanded far beyond that brief. Today, it operates as an end-to-end operating system for utilities, handling customer accounts, billing, and grid flexibility at scale. Through licensing partnerships, the platform now supports more than 70 million accounts globally.
The demerger reflects this evolution. With its own governance, leadership team, and shareholder base, Kraken is no longer tied to a single parent company. Instead, it can position itself as a neutral technology provider for utilities facing mounting pressure to modernise outdated systems while managing the demands of the energy transition.
Capital to match commercial traction
Kraken’s growth is already visible in its numbers. In September, the company disclosed that its contracted annual revenues had passed €424.5 million in 2025. From headquarters in London and New York, and regional centres in Paris, Tokyo, and Melbourne, Kraken now works with major utilities including EDF Energy, E.ON Next, National Grid, and Tokyo Gas.
A modular platform for real-world utility operations
Kraken’s advantage is built into the way its technology is structured. Rather than a single monolithic system, it runs on a modular, data-rich architecture designed to adapt to the operational realities of modern utilities.
At the heart of the platform is Kraken Customer, which brings customer service, billing, and account data into one unified view. This allows support teams to resolve issues faster and deliver more tailored interactions without jumping between disconnected systems.
On the infrastructure side, Kraken Asset, also known as KrakenFlex, focuses on real-time optimisation of distributed energy resources. Using predictive intelligence, it balances assets such as batteries, electric vehicles, and solar installations, helping utilities manage peak demand and unlock grid flexibility.
Completing the stack is Kraken Field, a tool built for on-the-ground operations. It helps engineers plan, install, and manage smart hardware, supporting large-scale rollouts of heat pumps, solar panels, and EV charging equipment.
Together, these components allow utilities to automate up to 40% of digital customer communications, improve demand forecasting, and roll out new pricing models at speed. The platform already underpins innovative offerings like “Intelligent Octopus Go,” the UK’s leading smart EV charging tariff. Its adaptability has also opened doors beyond energy, with water companies such as Severn Trent and telecom providers like Cuckoo adopting the system.
Two businesses, clearer focus
Alongside Kraken’s raise, investors led by Octopus Capital injected an additional €271.7 million into Octopus Energy to fund innovation and expansion. Following the spinout, Octopus Energy retains a 13.7% stake in Kraken, maintaining a strategic link without operational dependence.
For Octopus Energy, which operates across 27 countries and manages an €8 billion renewables portfolio alongside EV leasing, heat pumps, and solar, the separation sharpens its focus as a global clean energy operator. For Kraken, independence creates space to scale as a foundational technology provider for utilities worldwide.
Greg Jackson, Founder of Octopus Energy Group, said, “Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story.
“Having incubated Kraken, Octopus is a powerhouse of innovation and technology, and will now have even more horsepower to deliver the transformation of energy globally. With over 10 thousand staff, 11 million customers, $10bn of generation under management, and businesses from EV leasing to heat pump design and manufacture, Octopus is set for even greater things over the coming years.”
Amir Orad, CEO of Kraken, said, “Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities, with Octopus Energy remaining a key innovation partner and forward-thinking global customer.
“I’m excited to welcome our new investors, led by D1. With their backing, we can accelerate our impact on the energy transition, deepen partnerships with utilities worldwide, and help modernise the energy system at global scale – our goal being to positively impact a billion lives within a decade.”
