Octopus Energy Group has formally announced the spin-off of its technology company Kraken, as the platform’s annual revenue reaches $500 million, growing by four times over 3 years.
The spin-off marks a major strategic milestone, allowing Kraken to fast-track investments into its technology and expand into new energy markets and regions, while building on its utility roots.
The move comes as Kraken reaches $500 million in committed annual revenue through contracted licensing deals with energy majors such as EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas.
Launched as part of the Octopus Energy Group, Kraken’s AI-powered platform is now contracted to serve over 70 million household and business accounts worldwide. The operating system for utilities now processes 15 billion new data points a day.
Commenting in a release was Greg Jackson, founder of the Octopus Energy Group: “We set out to create Kraken as a global platform to transform utilities and deliver the innovation, service and value that customers deserve. I am so proud that the business is smashing it – and is now such a huge and successful company in its own right.
“Under Amir’s leadership and with a remarkably talented team, Kraken is soaring to new heights. I set the embarrassingly low goal of 100,000,000 accounts by 2027. It looks like it’ll beat that and can now aim to serve a billion people over the next decade.”
Earlier this year, Octopus Energy Group became the UK’s largest energy supplier, now serving over 7.7 million UK households. The company now operates in 27 countries – with 2.8 million more customers across its growing retail businesses in France, Germany, Italy, Spain and Japan. The company also boasts a £7 billion ($9.6 billion) renewables portfolio, as well as growing EV leasing, heat pump, and solar businesses.
Said Amir Orad, CEO of Kraken: “Octopus has been a phenomenal founding partner and first client. Kraken is now a globally successful business in its own right, operating independently for some time – completing our journey to full independence is a strategic and inevitable next step.
“It gives us more freedom to invest, expand, and serve our utility clients equally. We’ll keep pushing innovation in the cloud, advancing our utility-grade AI and harnessing vast amounts of energy and grid data, while ensuring structural clarity for customers, investors, and partners. We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken.”
To support this next phase, Kraken has appointed Tim Wan as its new chief financial officer. Wan brings experience from US software leader Asana, which describes itself as a work management platform for human and AI collaboration. At Asana, Wan, spearheaded its successful listing on the NYSE.
Originally published by Yusuf Latief in Smart Energy International.
