Octopus Energy Surpasses $9 Billion Valuation

octopus energy office

Octopus Energy’s recent acquisition of Shell Energy’s customer base has made it the most significant domestic electricity supplier in the UK by customer numbers. (Credit: Octopus Energy)

by | May 8, 2024

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Octopus Energy, a London-based energy company, has seen a significant increase in its valuation, now surpassing $9 billion, thanks to heightened investment from two of its major stakeholders, Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments).

Significant Investment

Generation Investment Management, known for its focus on sustainable investments, has increased its stake in Octopus Energy to 13%, with support from the U.S. and Australian pension funds, including the Australian superannuation fund Aware Super. CPP Investments, managing assets worth approximately $476.3 billion, has raised its stake to 12%

Greg Jackson, Founder of Octopus Energy Group:

“Bringing globally respected long-term investors on board helps raise our profile in key markets and open up new opportunities to continue our international expansion.”

Expansion of Octopus Energy

Octopus Energy has been expanding its presence abroad, operating in 18 countries. The company mainly promotes its energy software platform, Kraken, in North America, following its initial licensing agreement in Texas last year.

The company’s revenues grew threefold to $17.2 billion, and its Kraken platform now manages 32 million accounts. Octopus Energy’s customer base nearly tripled internationally, with notable growth in Germany, Japan, and France, bringing the global customer count to 7.7 million. The workforce also expanded to 4,700 employees in the UK.

Regarding technology and renewable energy, Octopus Energy’s tech arm, Kraken, serves 54 million accounts worldwide, and the company secured an investment of $800 million, valuing it at $8 billion. Octopus Energy has proactively launched solar and heat pump installation services across the UK, Spain, Germany, and Italy and has supported over 100 new solar projects in Europe. Additionally, innovative tariffs like the ‘Fan Club’ have been introduced in the US and Germany, offering cheaper power to customers near Octopus Energy’s wind turbines.

Latest Valuation and Acquisitions

This latest valuation surge follows Octopus Energy’s successful funding round in December, which raised $800 million. Tom Hodges, co-head of private equity at Generation Investment Management, praised Octopus Energy’s advancement in the energy sector, particularly noting its innovative digitization platform, Kraken, which has positioned the company ahead of its UK peers.

The company’s recent acquisition of Shell Energy’s customer base has made it the most significant domestic electricity supplier in the UK by customer numbers.

In addition to its domestic achievements, Octopus Energy has been diversifying its portfolio with strategic investments. It recently invested in Ocergy, a technology company specializing in floating offshore wind farms. It partnered with Energisa Group, a Brazilian energy utility company, marking its entry into the South American market.

Bill Rogers, global head of sustainable energies at CPP Investments, emphasized the organization’s commitment to supporting Octopus Energy’s growth trajectory. He highlighted Octopus Energy’s role as a pioneer in the energy sector, attributing its success to both its innovative customer propositions and its contributions to the global energy transition.

Octopus Energy’s valuation growth reflects its position as a leading player in the energy industry, driven by strategic investments and innovative initiatives aimed at shaping the future of sustainable energy.

Al Gore, Co-Chair, Generation Investment Management

“Octopus is a living example of the kind of company that Generation was founded to invest in. A company that is a true enabler of a sustainable system led by a mission driven team.”

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