What is Kraken within Octopus Energy?

Kraken is Octopus Energy’s cloud platform for energy retailers and system operators. It handles billing, customer support and smart meter workflows, aiming to cut costs and improve service. The platform also supports flexible tariffs and integrations, positioning it as a scalable, recurring-revenue software business serving regulated energy markets.

How much is Kraken worth and who invested?

Kraken was spun out at an $8.65bn valuation. The deal brought in $1bn from D1 Capital, Stripe and OpenAI, with about $850m recycled into Octopus’s core utility. Existing backers added around $320m, creating roughly $1.2bn of new funding to scale the platform and reinforce operations.

Will there be an Octopus Energy IPO?

There is active speculation about a future listing, with London and New York both in the conversation. Timing will depend on market conditions, growth, margin progress and cash flow. Until formal plans emerge, investors should monitor quarterly updates, client wins and profitability signals for direction.

Why does this matter for UK investors?

A successful software scale-up from a UK energy brand could lift confidence in local tech valuations and the IPO pipeline. If performance holds, it may encourage more institutional capital into UK growth names. Investors should watch listing venue signals, governance disclosures and execution against revenue and margin targets.

Global Market Insights

January 7: Octopus Energy Spins Off Kraken at $8.65bn, IPO Buzz Builds

ByDanny Kontos January 7, 2026January 7, 2026

Octopus Energy Kraken is in the UK spotlight after Octopus Energy spun off its software arm at an $8.65bn valuation. The deal raised $1bn from D1 Capital, Stripe and OpenAI, with about $850m recycled into the core utility. A further $320m from existing backers creates a $1.2bn war chest. Investors are asking if an Octopus Energy IPO could follow and whether London can secure a marquee tech listing. For UK markets, this may reset expectations for energy-tech valuations and the local IPO pipeline.