Kraken has recently announced an approximately £750 million ($1 billion) funding round, paving the way for its demerger from Octopus Energy Group.
The funding from existing and new investors includes £25 million from the British Business Bank, the government’s economic development bank, marking the Bank’s largest direct investment to date as it increases the scope of its investments in British scale-ups.
The funding round was led by D1 Capital Partners and done in partnership with Octopus Energy Group, which also made its first standalone investment into Kraken.
Kraken with its AI powered system for billing and customer service was launched within the Octopus Energy Group. Over the past decade it has grown to serve currently over 70 million accounts worldwide and processing over 15 billion data points daily.
The intent to spin-off from Octopus Energy Group was announced in September 2025 – coincident with the milestone of Kraken’s announced contracted annual revenue exceeding $500 million – with the aim to enable the company to speed up its expansion across the globe.
George Mills, Investment Director at British Business Bank, said Kraken is a powerful example of how UK-born tech can snowball into a global business.
“It has grown within Octopus Energy into a world-leading software platform with the potential to bring down energy costs for consumers across the globe. The Bank is backing the company as it moves from UK champion to global category leader.”
Greg Jackson, Founder of Kraken, said that Octopus has become an incubator for world-changing businesses, with Kraken the first to take flight.
“Born in Britain, it’s a real powerhouse already growing rapidly across the globe. With backing from the British Business Bank and other incredible investors, Kraken will now scale even faster – a true British tech export leading the energy revolution.”
Amir Orad, CEO of Kraken, says that Kraken is a global company with the mission to positively impact a billion lives within the next decade but with roots firmly in Britain.
“That’s why we’re delighted to welcome the backing of the British Business Bank. Alongside our other fantastic investors, they’re helping us modernise global utilities and build an energy system that’s resilient, reliable, affordable and future proof.”
Following the demerger, Kraken, which has been operating independently already, intends to operate with a separate cap table, independent governance and leadership.
Adds Orad: “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.”
Coincident with the spin-off announcement, Tim Wan, chief financial officer at US software company Asana was named as the new CFO of Kraken.
Recorded achievements include spearheading Asana’s successful listing and overseeing its journey to financial success and industry leadership whilst maintaining a focus on delivering an outstanding product for its customers.
Originally published by Jonathan Spencer Jones in Factor This sister publication Enlit World.
