Octopus Energy has spun off its technology arm, Kraken Technologies, into an independent company, a move that could value the newly separated platform at $13.6 billion.
The separation is designed to give Kraken freedom to expand globally beyond its parent company’s direct interests.
Kraken already manages over 70 million household and business accounts for utilities including EDF, National Grid US, and Tokyo Gas.
Its AI-driven software processes 15 billion data points daily, streamlining billing, power management, and grid services for energy companies worldwide.
Why separate Kraken from Octopus Energy now?
Octopus Energy’s decision to grant Kraken its independence removes barriers for utilities that previously hesitated to use a competitor’s in-house platform.
By becoming an independent entity, Kraken can pursue new clients, grow licensing revenue, and drive innovation without conflict of interest concerns.
The move comes after Kraken quadrupled its contracted annual revenue to $500 million in three years.
Octopus believed full separation was the “strategic and inevitable next step” for Kraken, in view of its continued growth and global utility demand for adaptable AI solutions.
Did you know?
Kraken can manage and balance over 2GW of power from electric vehicles and home batteries, making it a vital tool for clean energy transitions.
How does Kraken empower global utilities with AI
Kraken’s software powers everything from customer billing to grid-scale battery storage and smart demand management. Its AI engine balances power from 2GW of electric vehicles, heat pumps, and home batteries by charging devices when energy is cheap and supply is high, reducing costs and boosting renewable integration.
Major clients leverage Kraken to optimize the complexity of modern energy grids and implement flexibility programs.
The platform’s high scalability and speed of deployment set it apart, helping utilities become more responsive and cost-efficient.
What does the $13.6 billion valuation mean for shareholders
Kraken’s independence is expected to benefit Origin Energy significantly, which holds a 23% stake in Octopus Energy after a £280 million investment in 2023.
Analysts estimate the spinoff could add $2 per share to Origin’s valuation, thanks to the boost to licensing and platform revenues.
Though Octopus Energy has not confirmed the final details, reports suggest Kraken’s future public listing could rival the largest energy tech IPOs. The spinoff also positions Octopus Energy for further brand expansion in clean energy solutions.
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Which new leaders drive Kraken’s next phase
To guide the next chapter, Kraken appointed Tim Wan as chief financial officer. Wan brings extensive experience from leading Asana through its IPO and a strong background in scaling software companies.
Kraken CEO Amir Orad noted, “Completing our journey to full independence is a strategic and inevitable next step.”
Leadership changes at Kraken reflect its ambitions to prepare for a possible public listing and serve big global clients.
Expanded financial management and software expertise are considered vital for the scale of growth Kraken intends to achieve.
Where does Kraken go after independence
Kraken plans to build on its success in energy, aiming to reach more utilities and diversify applications beyond the energy sector. Founder Greg Jackson now wants the platform to serve a billion people over the next decade, far exceeding the initial goals set for the company.
The platform’s independence accelerates investment in new AI-driven technologies for clean energy transitions.
Kraken’s continued expansion could help shape future standards for digital infrastructure in global energy markets.
Kraken Technologies emerges as a global force at the intersection of AI and utilities, with independence opening new chapters for platform innovation, industry partnerships, and energy transformation worldwide.
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