Kraken Energy separates from Octopus Energy under the leadership of Greg Jackson
Octopus Energy Group, led by founder Greg Jackson, has set ambitious goals for its technology spin-off, Kraken. Originally aiming to serve 100 million accounts by 2027, Kraken is now projected to exceed this and potentially serve a billion people over the next decade.
As a standalone business, Kraken has been given more 'freedom to invest' and is expected to speed up its global expansion, fast-track investments into its technology, and drive innovation. Tim Wan, with experience from the US software company Asana, has been named as Kraken's new chief financial officer as part of the spin-off.
While Octopus Energy, the parent company, reported a decrease in profit for the 12 months ending April 2024, from £203m to £83m, its revenue had tripled from £4bn to £12.4bn. This growth was driven by an increase in its non-UK retail customer base, which tripled during the period to 1.2m. Since then, this number has further grown to 2.8m.
The increased costs taken on by Octopus Energy during the energy crisis, amounting to an additional £74m, were not included in the reported net profit. These costs were incurred to keep customer bills lower and support those in need. However, this increase in costs and decrease in profit may impact Octopus Energy's ability to invest, expand, and serve its utility clients.
Kraken's AI-powered platform is contracted to serve over 70 million household and business accounts worldwide. The company has secured annual revenue of $500m through licensing deals with various companies including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas.
Octopus Energy's global workforce surged from 4,800 to 8,500 during the period, reflecting the company's continued growth. As the largest energy supplier in the UK, serving over 7.7 million UK households earlier this year, Octopus Energy continues to make strides in the energy sector.
In a significant move, Octopus Energy's technology arm, Kraken, is being spun off to become a standalone business. This decision is expected to further fuel Kraken's growth and innovation, ultimately benefiting both the spin-off and the parent company.
