Key points
- Kraken Technologies is now valued at $8.65 billion following a $1 billion raise.
- The software company is spinning off from its parent, Octopus Energy.
- Kraken helps utilities manage the complex flow of renewable energy.
- Australian utility Origin Energy will maintain a 22.7% stake in Kraken.
Kraken, the software company that helps power grids manage the transition to clean energy, is now valued at $8.65 billion. This new valuation follows the company’s $1 billion first-ever standalone share sale. Kraken is the technology behind Octopus Energy, which grew from a small startup into the U.K.’s largest electricity supplier.
This new funding is a major step toward Kraken’s official separation from its parent company, Octopus. The separation is expected to happen by the middle of next year. The deal brings in new big-name investors, including D1 Capital Partners. It also includes a major energy company with over 10 million customers, which will now use Kraken’s software to manage its own operations.
Origin Energy, an Australian utility company that owns about a fifth of Octopus, is a key player in this deal. Origin is investing another $140 million into Kraken. The company also agreed to give up its exclusive rights to use the Kraken platform in Australia.
In exchange, Origin will receive an extra 1.5% stake in the software firm, keeping its ownership level steady at about 22.7% in both Kraken and Octopus after the split.
Kraken’s software is a powerful tool for the modern energy world. It helps utility companies manage the complex flow of electricity from sources like solar panels and wind turbines. It also helps them balance the power required for new technologies such as electric vehicles and home batteries.
By using Kraken, suppliers can offer lower prices to customers and even pay them to use more electricity during periods when the grid has surplus capacity. This helps prevent blackouts and improves overall system efficiency.
