London-based unicorn Octopus Energy Group has spun off its technology arm, Kraken, in a move designed to fast-track the platform’s global expansion and innovation.
Kraken, launched within Octopus, is now contracted to serve more than 70 million household and business accounts worldwide and processes 15 billion new data points every day.
The AI-powered system has become a core operating platform for utilities, with licensing deals in place with energy majors including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude and Tokyo Gas.
Annual contracted revenues have hit $500m, quadrupling in just three years.
The spinoff will give Kraken greater freedom to invest in its technology, expand into new markets and regions, and strengthen its position as a standalone business.
The company has appointed Tim Wan, former CFO of US software firm Asana, to lead its financial strategy.
The subsidiary has played a key role in Octopus’ rise to become the UK’s largest energy supplier earlier this year, serving 7.7m households.
Now operating in 27 countries, with 2.8m additional customers across Europe and Asia, Octopus now has a £7bn renewables portfolio and fast-growing businesses in EV leasing, heat pumps and solar.
In May 2024, the company was valued at £7.2bn after Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments) increased their stakes in the business.
“We set out to create Kraken as a global platform to transform utilities and deliver the innovation, service and value that customers deserve,” said Greg Jackson, founder of Octopus Energy Group.
“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.”
Amir Orad (pictured, main image), CEO of Kraken, added: “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.”