Octopus to spin off Kraken Technologies to accelerate global expansion

Octopus Energy is spinning off Kraken Technologies, its software arm, in a move aimed at accelerating its global expansion. The AI-powered platform, which supports energy and utility customers, is already connected to more than 70 million household and business accounts. The parent group said Kraken could pursue a stock market listing in London or New York within the next year, with a valuation of as much as £11 billion.

Kraken has picked up other utilities clients such as EDF, TalkTalk and National Grid US, and while built for use by Octopus, the platform has attracted external customers. The business has £369 million of committed annual revenues across these deals, quadrupling contracted revenues in the past three years.

Amir Orad, chief executive of Kraken, said: 'Kraken is now a globally successful business in its own right. It gives us more freedom to invest, expand and serve our utility clients equally.'

Founder Greg Jackson said: 'Kraken is soaring to new heights. I set the embarrassingly low goal of 100m accounts by 2027. It looks like it’ll beat that and can now aim to serve a billion people over the next decade.'

Octopus Energy remains the UK's largest energy supplier by customer numbers, now serving 7.7 million households. The spin-off signals Octopus's strategy to monetise Kraken's software and data capabilities to speed global scale, while Kraken itself continues to win new utility clients beyond the group that built it. The plan to float Kraken could place it on the radar of investors seeking exposure to AI-powered energy software platforms as a growing sub-sector within Business & Markets.

The move reflects a broader industry trend of energy suppliers increasingly deploying in-house software arms to streamline operations, enhance customer experiences and unlock new revenue streams. Kraken's growth to date, including its expanding list of utility clients, underscores how technology platforms can function as standalone businesses with potential public-market appeal. Investors will be watching how Kraken's governance, funding, and growth trajectory evolve as a separate entity, and whether a London or New York listing would follow within the targeted 12-month window.

This development comes as Octopus Energy positions itself as a fast-growing, technology-enabled energy provider. The group, which has expanded its UK footprint and international partnerships, has consistently cited software as a key driver of efficiency and customer acquisition. The Kraken spinoff is expected to allow both entities to allocate resources more efficiently toward international expansion, product development and sales in new markets. As Kraken scales, industry observers will assess how the company competes with other software vendors serving utilities and whether the asset could attract strategic buyers or a broader group of investors in addition to a potential public offering.