Fidelity, OTPP join $1bn financing round for Octopus Energy’s AI platform

Kraken, Octopus Energy’s AI-powered operating system for utilities has raised its inaugural standalone investment round. The $1bn round was led by D1 Capital Partners and saw participation from Fidelity International, Durable Capital partners and Ontario Teachers’ Pension Plan (OTPP).

Kraken, a technology platform powered by AI and targeted at the utility sector’s transition away from legacy assets, was developed by Octopus Energy over nearly a decade. Its technology aimed at improving efficiency and assisting utilities in switching to clean energy generation.

“Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story”, commented Greg Jackon, Octopus Energy Group’s founder.

Currently, Kraken supports over 70m customers. Its licensing agreements with utilities have contributed to revenues in excess of $500m.

“I'm excited to welcome our new investors, led by D1. With their backing, we can accelerate our impact on the energy transition, deepen partnerships with utilities worldwide, and help modernise the energy system at global scale – our goal being to positively impact a billion lives within a decade”, says Amir Orad, Kraken’s chief executive.

OTPP’s participation was structured through Teachers’ Venture Growth, an investment vehicle that targets late-stage growth opportunities. So far, TVG’s portfolio has net investments of around $10bn that includes companies such Instagrid and X-Energy, accompanies developing energy mobility solutions and advanced small modular nuclear reactors respectively.