Kraken valued at $8.7b in first standalone fundraise

Kraken, a UK-based energy software platform, has been valued at US$8.7 billion following its first standalone equity raise, according to Origin Energy.

Origin Energy, which holds about 20% of Octopus Energy and invests in Kraken, will put US$140 million into the deal.

Kraken will raise US$1 billion from new and existing shareholders, including D1 Capital Partners and a major energy retailer that will also become a customer.

The funding will support Kraken’s formal separation from Octopus Energy, targeted for mid-2026.

Kraken’s software is licensed to energy suppliers to help manage electricity flows as the use of EVs, home batteries, solar panels, and heat pumps rises.

Origin agreed to waive its exclusive rights to Kraken in Australia in exchange for an added 1.5% stake, bringing its direct interest in both Kraken and Octopus to 22.7% after the transaction.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Kraken valuation near 17x contracted Annual Recurring Revenue (ARR) hints at demand for AI utility software, with a plan to reach 1 billion people over the next decade 1

Kraken is valued at $8.7 billion 2. That implies about 17x its $500 million in committed annual revenue 2. The $500 million is contracted ARR that has not yet been fully recognized.
Expectations rose after a 70% year over year jump to £89.6 million in FY2024 3. The lofty price leans on contracted revenue, with about 40 utilities still migrating and renewing 4.
The platform can cut utility costs by up to 40% while keeping 5-star service scores 5. Kraken covers 70 million contracted accounts today 2, not all live yet.

System integrators and cloud vendors can benefit from Kraken expansion across utilities and migrations

About 40 utilities across energy, water, and telecom have licensed Kraken 4. They need migration help and data integration, plus analytics to exit billing, meter data, plus customer systems.
Kraken moved 1.6 million customers in 51 days 5. Saint John Energy is a municipal electric utility in New Brunswick, Canada 6 that used a phased plan with parallel systems to cut risk. Consulting firms for change management and system integration can support similar rollouts.
Cloud providers can offer managed services for operations and reliability tooling to Kraken clients 2. The platform handles 15 billion new data points each day and needs reliable, scalable architecture, while its layered design allows third-party add-ons for complementary tools 6.