Octopus Energy Group is preparing to spin out its technology arm Kraken in a landmark deal that values the business at $8.65 billion, following a $1 billion standalone investment round.
The funding, announced in London on 29 December, is led by D1 Capital Partners, with participation from major global investors including Fidelity International, Durable Capital Partners and the Ontario Teachers’ Pension Plan Board through its Teachers’ Venture Growth arm.
The move paves the way for Kraken’s formal demerger and independence from Octopus Energy Group, allowing the platform to operate as a neutral, global technology provider to utilities while Octopus sharpens its focus on energy retail, generation and clean technology.
As part of the transaction, new and existing investors are acquiring around $1bn of Kraken equity. In parallel, investors led by Octopus Capital are injecting a further $320m into Octopus Energy Group to support innovation and growth across its wider businesses. After the split, Octopus will retain a 13.7% stake in Kraken.
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