Octopus Energy Group said it sold a 13% stake in the energy group to a US climate change fund for US$600mln (£438mln) the day after it took on 580,000 customers from one of the casualties of the UK's energy crisis.
The investment from Generation Investment Management, co-founded and chaired by Al Gore, values the UK energy provider at £3.4bn. The deal was several months in the making.
Last week Octopus had 2.5mln customers in the UK, USA, Germany, Spain and New Zealand before scooping up the remnants of Avro Energy, which brought its customers base to more than 3mln.
Octopus, which was founded in 2016, said it will use the proceeds "to turbo boost its mission to drive the renewable revolution globally", with a focus on cleaner and smarter energy solutions. The company provides energy to 17 million accounts globally, through its own retail businesses plus licensing agreements with Good Energy, Hanwha Corporation, Origin Energy, nPower and E.ON.
USA, Germany and Australia are the most recent countries in which the company has launched, the former via the acquisition of Silicon Valley-based startup Evolve Energy last September.
Octopus also generates its own electricity, managing over £3b of renewable generation, or enough to power about 1.5mln homes.
Alongside the US$600mln investment, Origin Energy is also adding a roughly US$55mln equity investment to help Octopus enhance its smart grid capability.
Octopus founder and chief executive Greg Jackson said: "Whilst the UK energy market is currently in a tough state, it’s highlighted the need for investment in renewables and technologies to end our reliance on fossil fuels. So we are delighted to announce our agreement with Generation Investment Management, created to back sustainable companies changing the world for the better."
He said the Octopus management team watched Gore's An Inconvenient Sequel three years ago "and were inspired to accelerate and expand our mission" so being backed by the fund co-founded and chaired by Gore "enables us to make that dream come true".
Generation Investment Management's Tom Hodges said: “Octopus Energy has an extraordinarily good fit with Generation’s mission of investing over the long term to support system and climate-positive companies. The world is at the early stages of an unprecedented energy transition which is essential to reach the goals of the Paris Agreement. This can be done in a way that is better for the environment and consumers. Octopus and its software platform Kraken are at the forefront of innovation and helping to create the dynamic and flexible renewable energy system needed. Generation is pleased to partner with Octopus Energy to help build that future.”