**Kraken Technologies Valued at $8.65 Billion Amid Spin-Off Plans**
Origin Energy Ltd. has announced that Kraken Technologies Ltd., a software platform designed to assist utilities in transitioning to cleaner energy, has achieved a valuation of $8.65 billion following its first independent fundraising round. This development is significant as Kraken has played a crucial role in Octopus Energy Group Ltd.’s rise to become the largest electricity supplier in the UK, surpassing traditional industry players and now serving over 7 million customers.
Origin Energy, which holds approximately 20% of Octopus Energy, revealed that Kraken is set to raise $1 billion in equity through its inaugural standalone share sale, involving both new and existing shareholders. This fundraising effort is expected to facilitate a formal separation from Octopus, targeted for mid-next year. Frank Calabria, CEO of Origin, expressed confidence in Kraken’s potential, stating that the company has successfully maintained its valuable equity stake while supporting Octopus Energy’s growth.
As part of this fundraising initiative, D1 Capital Partners will join as a new investor, alongside a prominent energy retailer with over 10 million clients, which will also become a customer of Kraken. Origin plans to invest $140 million in this process. In September, Octopus announced its intention to spin off Kraken, which has been licensed to other energy providers, enabling them to manage power flows as renewable technologies like electric vehicles, home batteries, solar panels, and heat pumps gain traction.
Additionally, Origin has agreed to relinquish its exclusivity to the Kraken platform in Australia in exchange for an extra 1.5% stake, which will help mitigate dilution from the share sale. Following the equity raise and Kraken’s separation from Octopus, Origin will hold a direct interest of 22.7% in both Kraken and Octopus.
Kraken’s software empowers suppliers to offer competitive pricing and incentives to customers, aiding in the management of electricity flow fluctuations associated with a grid increasingly reliant on renewable energy sources.
**FAQ**
**What is Kraken Technologies and its significance?**
Kraken Technologies is a software platform that helps utilities manage the transition to cleaner energy. It has been instrumental in Octopus Energy’s growth and is now valued at $8.65 billion as it prepares for a spin-off from Octopus.
