Kraken Spinoff Marks Major Shift for Octopus Energy
Octopus Energy, the UK’s biggest supplier of gas and electricity, has said that it will spin off its technology division, Kraken Technologies, into its own company after a historic investment deal that values the platform at $8.65 billion (£6.4 billion). A group of investors led by D1 Capital Partners, which is based in New York, bought a $1 billion stake in Kraken from the company. This made it possible for Kraken to become independent and maybe even go public.
Greg Jackson, the founder and CEO, told the BBC that there was “every chance” Kraken would go public “in the medium term,” and that the listing would likely be “between London and the US.” The move puts Kraken in a position to grow beyond its parent company, making it one of the biggest tech spin-offs in the UK energy sector so far.
Source: Octopus Energy
AI Platform Runs Millions of Energy Accounts Around the World
Kraken was first made to help Octopus Energy’s customer service, but it has since grown into a powerful AI-driven platform used by utilities all over the world. Its software takes care of billing, managing customers, and optimizing energy use, and it rewards users who cut back on their use during peak hours.
Today, Kraken manages more than 70 million customer accounts for both homes and businesses. It works with big utilities like EDF, E.On Next, TalkTalk, and National Grid US. Kraken has become one of the top energy-tech platforms in the world because of how quickly it has been adopted around the world. It is at the cutting edge of AI and clean energy management.
Investors Support Kraken’s Independent Future
D1 Capital Partners led the $1 billion investment. Fidelity International and a company owned by the Ontario Teachers’ Pension Plan also took part. The money will be split between Octopus Energy and Kraken, with most of it going to Octopus to help it grow and stay financially stable.
After the deal, Octopus will still own 13.7% of Kraken. Kraken CEO Amir Orad said that the spin-off would give the company “focus and freedom” to grow partnerships that were hard to make because it was connected to a direct energy competitor. “Being independent lets us grow faster and work together more openly across the industry,” Orad said.
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Prospective Stock Listing Could Revitalize London’s Market
Greg Jackson, the CEO of Kraken, said that the company’s possible listing could happen in either London or the United States, depending on how investors feel and the state of the exchanges. Jackson said, “Both stock markets have strong investor bases, but it’s up to them to show why they’re the right choice.”
A London listing would be important because it could change a trend of well-known British companies choosing to list in the US. Jackson said again that he would rather keep Kraken’s headquarters in the UK. He said, “If London is the right place to list, I would love that, but it has to be where investors feel most confident.”
Making Octopus Energy’s Balance Sheet Stronger
The sale and spin-off are very important for Octopus Energy right now. The company recently beat out British Gas to become the UK’s biggest energy provider, serving 7.7 million homes. But it has come under fire for not yet meeting Ofgem’s financial resilience goals. Octopus said the new investment would “almost double Octopus Energy Group’s already strong balance sheet,” giving it a much-needed boost as regulations become stricter.
Octopus’s overall sales went up 10% to £13.7 billion, but the company lost £260 million before taxes for the year ending April 2025. This was a big drop from the £78 million profit it made the year before. The company said that energy use went down because the weather was unusually warm, making this the UK’s hottest spring since 1885. Gas use went down by 11% in March and 25% in April, which cost the company about £103 million in profits.
Kraken’s Growth and Place in the Market
Kraken’s rise shows how Octopus Energy has become a global leader in energy technology. The platform’s AI features help energy companies use renewable sources more effectively and tailor their interactions with customers. Utilities that want to update old infrastructure are interested in its modular design.
The company wants to reach its full market potential and attract a wider range of tech investors by separating Kraken from Octopus. Analysts in the industry say that Kraken could soon be worth as much as and reach as many people as well-known energy-tech platforms, especially as it grows in North America, Europe, and Asia.
A Defining Step for UK Tech and Energy Progress
The decision by Octopus Energy to spin off Kraken is a key moment in Britain’s transition to cleaner energy. It shows how AI is changing the power industry and how UK companies can build innovation ecosystems that are competitive around the world.
Both companies will benefit from Kraken’s full independence in a few months. Octopus will get more money, and Kraken will have more freedom to make decisions. If the upcoming stock flotation goes well, it could show that investors are once again confident in the UK’s tech and energy markets. This would make Kraken one of the country’s most valuable digital exports.
