Octopus Energy is spinning off its technology arm Kraken into a standalone business as the fast-growing platform cements its position at the heart of the global energy transition.
Kraken, an artificial intelligence-driven operating system for utilities, has grown at breakneck speed since its launch within Octopus, with contracted annual revenues now hitting $500 million, a fourfold increase in three years.
The platform already manages more than 70 million household and business accounts worldwide and processes some 15 billion new data points daily.
The separation will allow Kraken to accelerate investment in its technology, expand into fresh markets and sharpen its focus on innovation, while continuing to serve energy giants including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude and Tokyo Gas.
The company has also recruited Tim Wan, formerly chief financial officer of US software group Asana, to guide its financial strategy through the next stage of expansion.
Octopus Energy has itself been reshaped by Kraken’s technology. The London-based group became the UK’s largest energy supplier this year with 7.7 million households, and now operates in 27 countries with ventures spanning renewables, electric vehicles, heat pumps and solar.
Greg Jackson, Octopus founder, said Kraken was on course to smash his “embarrassingly low” goal of reaching 100 million customer accounts by 2027.
“It looks like it’ll beat that and can now aim to serve a billion people over the next decade,” he said.
Kraken chief executive Amir Orad added that independence would give the company “more freedom to invest, expand, and serve our utility clients equally”, describing the spin-off as a “strategic and inevitable next step”.
Kraken is also carving out a role in balancing grids by controlling over 2 gigawatts of flexible power from electric vehicles, batteries and heat pumps, cutting costs for utilities and lowering bills for households.