Kraken spins out of Octopus Group at $8.65bn valuation and raises $1bn
Kraken TechnologiesDealroom has a profile for this one. Try Dealroom → has announced a $1 billion funding round on December 29, 2025, valuing the company at $8.65 billion. The round was led by D1 Capital Partners, with participation from Ontario Teachers' Pension Plan,Dealroom has a profile for this one. Try Dealroom → Fidelity InternationalDealroom has a profile for this one. Try Dealroom →, Durable Capital Partners, General Catalyst, and BDT & MSD PartnersDealroom has a profile for this one. Try Dealroom →. Existing investors Octopus Energy Group and Origin EnergyDealroom has a profile for this one. Try Dealroom →continue as shareholders, retaining 13.7% and 22.7% stakes respectively.
The funding establishes Kraken's formal independence from parent company Octopus Energy, with a full spinoff expected by mid-2026. Kraken reported over $500 million in contracted annual recurring revenue as of September 2025, managing over 70 million customer accounts across 30 countries for major utilities including EDFDealroom has a profile for this one. Try Dealroom →,E.ONDealroom has a profile for this one. Try Dealroom →, National GridDealroom has a profile for this one. Try Dealroom →, Tokyo GasDealroom has a profile for this one. Try Dealroom →, and Origin EnergyDealroom has a profile for this one. Try Dealroom →. The platform processes 15+ billion data points daily and operates the world's largest residential virtual power plant, managing 2+ gigawatts of distributed energy resources.
A separate $320 million capital injection from Octopus Capital investors strengthens the parent company's balance sheet post-spinoff. An IPO is anticipated in late 2026 or early 2027, with analysts projecting a $15 billion+ valuation.
Kraken Technologies is a cloud-native operating system for energy utilities that integrates customer billing, CRM, and AI-powered grid optimization. The platform enables utilities to manage distributed energy resources—electric vehicles, home batteries, solar panels, and heat pumps—as virtual power plants, reducing operational costs by up to 40%.
Sources: Kraken Technologies
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