Digital transformation is accelerating the innovation process in the energy industry, with technology platforms playing a crucial role. Australian energy company Origin Energy Ltd. announced that the valuation of the clean energy software platform Kraken Technologies Ltd., in which it has invested, has risen to $86.5 billion after completing its first equity financing round. The Kraken platform is part of Octopus Energy Group Ltd., with Origin being a significant strategic investor in the latter. Utilizing artificial intelligence, the platform has helped Octopus rapidly grow into a leading electricity supplier in the UK, serving over 7 million customers in the country.
Origin revealed in a statement that Kraken raised a total of $1 billion in equity capital in this round, involving both new and existing shareholders. This financing lays a key foundation for its planned formal spin-off from Octopus around mid-next year. Boosted by the news, Origin’s share price on the Sydney Stock Exchange rose by up to 1% during intraday trading. CEO Frank Calabria expressed full confidence in Kraken’s future potential.
This financing round attracted several well-known investment institutions. Among them, D1 Capital Partners became one of the new investors, while an undisclosed “leading energy retailer” with over 10 million customers also participated in the equity purchase. This retailer will simultaneously become a user of Kraken’s software. According to an additional statement from Octopus, other new shareholders include Fidelity International, Durable Capital Partners, and entities under the Ontario Teachers’ Pension Plan Board.
With the widespread adoption of new energy technologies such as electric vehicles, home batteries, solar panels, and heat pumps, the balance of energy supply and demand faces new challenges and opportunities. Kraken’s software has been licensed to multiple global energy suppliers, helping them more effectively coordinate household electricity supply and demand. According to statistics, through various licensing agreements, the platform currently serves over 70 million energy accounts worldwide. Octopus emphasized that after the spin-off, Kraken will become an independently governed, fully autonomous technology platform, enabling it to focus more on expanding consumer services, power generation technologies, and clean energy businesses.
By adopting Kraken’s software, energy suppliers can offer more attractive energy solutions to users and use flexible incentives to adjust electricity demand. This approach effectively addresses grid fluctuations caused by the increasing proportion of renewable energy and drives the energy system toward a smarter and more stable transformation.
