Octopus Energy to spin out AI utility platform Kraken at €7.3B…

Team S · 2026-01-02T08:47:10.000Z

British energy and technology group Octopus Energy has secured a landmark €850 million ($1 billion) investment round for its AI-powered utility software business Kraken, valuing the platform at approximately €7.3 billion ($8.65 billion) and marking the formal spin-out of Kraken as an independent company. The funding round — the first standalone capital raise for Kraken since its inception within Octopus — was led by D1 Capital Partners, with significant participation from Fidelity International, Durable Capital Partners and the Ontario Teachers’ Pension Plan Board through its late-stage growth arm, Teachers’ Venture Growth. Existing Octopus Energy investors also contributed, underlining strong institutional confidence in Kraken’s growth trajectory and its role in modernising utility operations globally. Octopus Energy will retain a 13.7% stake in Kraken following the spin-out, ensuring a continued strategic partnership while giving Kraken independent governance, operational focus, and the ability to accelerate global expansion as a neutral platform for utilities worldwide. Additionally, investors led by Octopus Capital injected a further €271.7 million ($320 million) into Octopus Energy itself to support innovation and broader growth across its energy and technology offerings. Kraken is an end-to-end, artificial intelligence-driven operating system built specifically for utilities, combining cloud-native architecture with automation, real-time data processing, and modular services to manage billing, customer engagement, grid optimisation, and flexibility services. The platform currently supports more than 70 million customer accounts globally through licensing agreements with major energy providers and utilities, including legacy incumbents and new retail suppliers. Founded within Octopus Energy and now led as an independent company, Amir Orad serves as CEO of Kraken, overseeing the spin-out and its growth strategy. Under his leadership, Kraken has grown into one of the most widely adopted utility platforms in the world, renowned for its scalability and capacity to replace outdated legacy systems. The spin-out comes amid strong demand for digital utility infrastructure as energy companies worldwide seek more efficient and flexible systems capable of integrating renewables, managing customer data, and supporting electrification trends like EV adoption and smart resource optimisation. Kraken’s AI-centric platform positions it as a critical backbone technology for utilities undergoing digital transformation. With this funding round completed and a new corporate structure in place, Kraken is poised for rapid global expansion — potentially culminating in an initial public offering (IPO) in the coming years, with London or New York as possible listing venues. #energy #AI #OctopusEnergy #KrakenTech #fundingnews #utilitysoftware #spinout #digitalutilities #renewableenergy #techinvesting #globalexpansion #cloudsoftware #venturecapital #cleanenergytech #platformAI

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Octopus Energy to spin out AI utility platform Kraken at €7.3B… | Newnex