London, January 6, 2026, 23:14 GMT
- Ontario Teachers joins $1 billion Kraken round valuing the utility software unit at $8.65 billion
- Origin Energy to invest $140 million and keep a 22.7% economic interest in Kraken
- Separation targeted for mid-2026, subject to regulatory approvals
Octopus Energy’s software arm Kraken has raised about $1 billion in its first standalone equity round, valuing the utility technology business at $8.65 billion, Ontario Teachers’ Pension Plan said on Monday. Octopus will keep a 13.7% stake in Kraken after the split, it said. 1
The carve-out puts fresh capital behind a bet that utilities will pay up for modern systems as grids strain under electrification and more variable renewable power. It also aims to make Kraken easier to sell to rival suppliers by loosening its ties to Octopus, which operates a large retail energy business.
Origin Energy, a major Octopus shareholder and Kraken customer, said $150 million of the raise will be retained in Kraken and $850 million in Octopus, alongside a further $320 million injection into Octopus from Octopus Capital and other investors. Origin CEO Frank Calabria said the transactions had “laid the foundations necessary” for both businesses to pursue growth with “greater focus and financial strength”, with separation anticipated in mid-2026 pending regulatory approvals. 2
Kraken’s platform is an artificial-intelligence system that helps utilities run core functions such as billing and managing flexible demand from devices like electric vehicles and heat pumps. Octopus founder Greg Jackson called Kraken “in a class of its own”, while Kraken CEO Amir Orad said independence would help it scale as “a neutral, global operating system for utilities.”
D1 Capital Partners founder Dan Sundheim said Kraken’s “customer satisfaction, stickiness, and growth” underpinned the investment. Ontario Teachers said Kraken is contracted to serve more than 70 million accounts and processes more than 15 billion data points a day, adding that Kraken reported contracted annual revenue above $500 million.
Sky News reported in late December that Goldman Sachs was advising Octopus on the demerger and a 10%-20% stake sale that could value Kraken at $9 billion to $10 billion. It also said Kraken is licensed in the UK to rivals E.ON and EDF Energy, and that Octopus had overtaken Centrica-owned British Gas to become the country’s biggest household supplier. 3
Reuters reported the round was led by D1 and included Fidelity International and Durable Capital Partners, and that Kraken supplies software to utilities including EDF, National Grid’s U.S. arm and Tokyo Gas. Origin said it would maintain a 22.7% interest in Kraken after the transaction, while Octopus retains 13.7%. 4
But the separation still hinges on regulatory approvals and the ability to keep signing large utility clients during a complex carve-out. Any delay to the mid-2026 timetable, or a slowdown in utility software spending, would put the $8.65 billion valuation under sharper scrutiny.
