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Octopus Energy Spins Off Kraken at $8.65 Billion Valuation After $1 Billion Round

The transaction establishes Kraken as an independent company to speed adoption of its platform by utilities worldwide.

Overview

  • D1 Capital Partners led the funding, with participation from Ontario Teachers’ Pension Plan, Fidelity International and Durable Capital Partners.
  • New and existing investors will buy about $1 billion of equity in Kraken, while investors led by Octopus Capital will inject an additional $320 million into Octopus Energy.
  • Octopus Energy will retain a 13.7% stake in Kraken following the demerger.
  • Kraken licenses an AI-powered operating system to utilities including EDF, National Grid U.S. and Tokyo Gas, serving more than 70 million contracted accounts and reporting over $500 million in contracted annual revenue in September.
  • Australia’s Origin Energy will invest about $140 million, maintain a 22.7% interest in Kraken and waive Australia exclusivity in exchange for an additional 1.5% equity stake.