Octopus spins off Kraken to accelerate global expansion

Octopus Energy announced on Thursday that it will spin off Kraken Technologies, the artificial intelligence powered software platform it built to run its energy business, into an independent company as part of a push to accelerate Kraken's global expansion. The newly separated business will be led by Kraken chief executive Amir Orad, who has run the unit within Octopus since July 2024, and will name Tim Wan, formerly chief financial officer at Asana, as Kraken's chief financial officer, the company said.

Octopus said Kraken, once internal operations software, has become a major revenue driver through licensing deals with utilities including EDF, E.ON Next and National Grid US. Company statements and media reports put Kraken's committed annual recurring revenue at roughly $500 million, a fourfold increase over three years. Other reports cited lower figures in the $366 million to $369 million range. Kraken's reach is likewise reported variably; Octopus and other accounts say the platform is connected to more than 70 million household and business accounts, with some estimates exceeding 75 million.

Kraken's software helps utilities manage the transition to cleaner energy by...