Kraken Technologies is on track to become a standalone company.
Origin Energy said Octopus Energy’s AI and software arm completed a $1 billion capital raise, valuing Kraken at $8.65 billion, clearing the way for its separation.
The new funding came from an unnamed major Kraken customer and D1 Capital Partners, according to Origin. Origin itself plans to add $140 million.
A formal breakaway of Kraken from Octopus is targeted for mid-2026, with both companies continuing to work closely after the split.
Ownership will change but not disappear.
Octopus Energy will keep about 13.7% of Kraken, while Origin’s interest will remain at 22.7%. Kraken’s platform is used by utilities such as EDF and E.ON, and Origin said contracted recurring revenue has more than doubled over the past 18 months.
Kraken’s software manages customer accounts and grid operations, positioning it as a modern operating system for utilities transitioning to cleaner power.
Origin added that a newly signed major customer brings Kraken closer to its goal of reaching 100 million accounts on the platform.
Why This Matters Today
A separate Kraken means investors can back the software business directly rather than through Octopus Energy.
That can change how capital flows into AI platforms serving utilities and accelerate product expansion as grids incorporate renewables and distributed energy resources.
The deal also signals confidence in energy software companies at large valuations.
With stronger revenue growth and independent governance, Kraken is being positioned for possible public markets once the separation is complete.
Our Key Takeaways:
- Kraken raised $1 billion at an $8.65 billion valuation and will separate from Octopus Energy, with completion expected by mid-2026, Origin Energy said.
- An unnamed major Kraken customer and D1 Capital Partners joined the round, while Octopus will retain a 13.7% stake and Origin will hold 22.7%.
- Kraken’s utility software business has rapidly grown recurring revenue and is approaching a target of managing 100 million customer accounts.
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