Octopus to spin off energy management platform Kraken as standalone tech company

Move marks key strategic milestone for Octopus

Octopus Energy Group is planning a demerger of its hugely successful Kraken Technologies platform.

Octopus Energy Group has announced it will spin off its technology arm Kraken into a standalone company, as the platform hits $500 million in contracted annual revenue.

Rumours of the planned demerger first emerged in July, and followed Kraken being made an operationally independent entity in 2020, operating in Japan, US, New Zealand, Australia and most of mainland Europe in addition to the UK.

Kraken, originally developed in-house by Octopus, provides an AI-powered operating system for utilities. It now manages more than 70 million customer accounts globally and processes 15 billion new data points each day. The system is used by major energy players including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude and Tokyo Gas.

The decision to separate Kraken marks a key strategic milestone for Octopus. The move is intended to accelerate international expansion, support investment in new technologies, and give the platform more freedom to serve utility clients worldwide.

To support this next phase of growth, Kraken has appointed Tim Wan as chief financial officer. Wan previously held the same role at US software company Asana, where he oversaw its IPO and helped steer its financial strategy.

Greg Jackson, founder of Octopus Energy Group, said Kraken had already outgrown its origins as an internal platform. “We set out to create Kraken as a global platform to transform utilities and deliver the innovation, service and value that customers deserve,” he said. “I am so proud that the business is smashing it and is now such a huge and successful company in its own right.”

Amir Orad, CEO of Kraken, added that independence was the “strategic and inevitable next step” for the business. “It gives us more freedom to invest, expand, and serve our utility clients equally,” he said. “We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken.”

Kraken said it has quadrupled its contracted revenues over the past three years. It has also been expanding into new areas, including managing more than 2GW of residential flexibility from EVs, heat pumps and home batteries.