The UK Government has announced a £25 million direct investment in Kraken Technologies, an artificial intelligence software platform for companies in the energy sector, marking the most significant deal in the history of the British Business Bank.
The investment followed Kraken’s spin-off from its parent company, Octopus Energy Group, and is part of a $1 billion global financing round that also involved D1 Capital Partners, Fidelity International, Durable Capital Partners and the Ontario Teachers’ Pension Plan Board.
What is Kraken Technologies and why is it attracting so much capital?
Kraken Technologies is an operating system based on artificial intelligence designed for energy and utility companies, whose primary mission is to modernize and automate utility operations to improve efficiency and accelerate the transition to clean energy. transition to clean energy. Headquartered in London, its platform already manages more than 70 million accounts around the world, collaborating with major industry players such as EDF Energy, E.ON Next and Tokyo Gas.
Since its launch within Octopus Energy ten years ago, Kraken has demonstrated exponential growth, with annual contracted revenues exceeding $500 million and processing more than 15 billion data points per day. This technological capability has enabled it to establish itself as one of the most advanced solutions for energy management on a global scale.
The context: a bolder industrial policy
This investment is part of a renewed strategy by Business Secretary Peter Kyle to wean British scaleups off their dependence on foreign capital. During the presentation of the plan at Kraken’s London offices, Peter Kyle emphasized the need to “bet big on industries where Britain can succeed”.
The package also includes measures to reduce bureaucracy, simplify regulations and modernize the regulatory system in sectors such as health, agriculture, energy and technology.
More investments for strategic sectors
In addition to the backing for Kraken Technologies, the government announced two new investments of £50 million each in dedicated life sciences and deep tech funds for Epidarex Capital and IQ Capital. 180 million will also be allocated to battery research and development. battery research and development180 million will also be earmarked for battery research and development under the Battery Innovation Program, thus boosting the energy transition.
An independent and global future
Following its spin-off, Kraken Technologies will operate with its own structure and leadership, allowing it to scale autonomously. Its CEO, Amir Orad, remarked on the company’s ambition to positively impact one billion people over the next decade by modernizing the world’s energy system.
Backed by the UK Government and international funds, Kraken Technologies is emerging as a British technology export with the potential to lead the energy sector of the future.
Source: British Business Bank