Octopus Energy Chief Eyes Massive Kraken Tech Float

Greg Jackson, founder of Octopus Energy, is preparing its technology division, Kraken Technologies, for a potential £6 billion flotation. Jackson, who hails from Saltburn near Middlesbrough, has built Octopus Energy into the UK's largest domestic energy supplier, serving 7.9 million customers.

Kraken Technologies, a software platform managing customer service and supply, is central to Octopus Energy's success and is also used by competitors like E.On and EDF. Despite its acclaim as a valuable British tech startup, some analysts express caution regarding its ambitious valuations and recent market fears surrounding AI's impact on software-as-a-service businesses.

The spin-off of Kraken is intended to allow for easier sales to other companies while separating it from Octopus Energy's competitive energy market operations. This move is also anticipated to provide financial benefits for Jackson and other staff holding shares, though murmurs suggest it may also be to raise capital for regulatory financial resilience rules.

Jackson, known for his unconventional style and a net worth of £300 million, emphasizes customer service as the brand's foundation, citing the company's in-house social workers who assist vulnerable customers. He also advocates for significant changes to the UK's energy policy, suggesting improvements to the national grid and utilizing renewable energy sources more effectively to save billions annually.

While the government holds a £25 million stake in Kraken, Jackson notes a significant lack of British investment in Octopus Energy, with most funding coming from Canadian, Australian, and Japanese backers. The upcoming Kraken float, planned for 2027 or 2028, is viewed as crucial for boosting London's stock market and will reveal whether Jackson's ambitious plans will succeed.