Octopus Energy Sells Kraken Stake for 1 Billion Pounds

Octopus Energy Group, Britain's largest household energy supplier, has sold a minority stake in its software subsidiary Kraken Technologies for approximately 1 billion pounds, valuing the artificial intelligence platform at 8.65 billion pounds. The transaction, announced Monday, marks the first standalone funding round for Kraken and sets the stage for its formal separation from the parent company as an independent entity.

The equity sale involves a consortium of investors led by U.S.-based D1 Capital Partners, along with Fidelity International, Durable Capital Partners, and a unit of the Ontario Teachers' Pension Plan Board. Australia's Origin Energy, a major stakeholder in Octopus, is also participating with an investment of about 140 million pounds in Kraken. In exchange for waiving exclusive rights to the platform in Australia, Origin will maintain a 22.7 percent stake in Kraken post-transaction. Octopus Energy will retain a 13.7 percent holding in the business after the deal.

Most of the proceeds from the stake sale will bolster Octopus Energy's operations, while an additional 320 million pounds from investors, led by Octopus Capital, will support innovation and growth...