What is Kraken Technologies and why is it valued so highly?

Kraken Technologies is a software platform that helps utilities manage the transition to cleaner energy. Its high valuation of $8.65 billion stems from its crucial role in Octopus Energy's rapid growth and its potential to manage fluctuating power grids.

How is Kraken Technologies related to Octopus Energy?

Kraken is Octopus Energy Group's software platform, instrumental in its expansion to over 7 million customers in the UK. It is planned to be formally separated from Octopus Energy by mid-next year.

What is Origin Energy's involvement with Kraken Technologies?

Origin Energy holds a significant stake, approximately one-fifth, in Octopus Energy and has invested $140 million in Kraken Technologies' recent $1 billion equity raise. Origin will maintain a direct interest in Kraken after its separation.

Home / Business and Economy / Kraken Tech Valued at $8.65B in Energy Software Boom

Kraken Tech Valued at $8.65B in Energy Software Boom

30 Dec

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Summary

Kraken Technologies valued at $8.65 billion in its first standalone funding.
Software platform Kraken powers Octopus Energy's growth to 7 million customers.
Origin Energy maintains a significant stake as Kraken prepares for separation.

Kraken Tech Valued at $8.65B in Energy Software Boom

Kraken Technologies, a vital software platform for managing the energy transition, has been valued at $8.65 billion after its first independent equity raise. This significant valuation highlights its crucial role in Octopus Energy Group's rapid growth, propelling it to become the UK's largest electricity supplier with over 7 million customers.

New investors, including D1 Capital Partners, and a major energy retailer with over 10 million clients, have participated in the $1 billion equity sale. Origin Energy, a key shareholder holding approximately one-fifth of Octopus Energy, committed $140 million to the fundraising effort.

The software's licensing to other providers allows for better management of power flows with increasing adoption of electric vehicles and home energy solutions. Kraken is targeted for a formal separation from Octopus Energy by mid-next year, with Origin Energy retaining a direct interest.