Origin Energy will invest US$140 million in Kraken’s US$1 billion funding round, with Kraken retaining US$150 million and Octopus Energy keeping US$850 million of the new capital; Octopus Capital and other investors will contribute US$320 million to Octopus Energy for growth.

Kraken will gain independent governance and leadership through a spin-off, positioning it as a neutral, global operating system for utilities while Octopus Energy focuses on its broader business.

Octopus Energy has agreed to sell a stake in Kraken’s software arm, valuing Kraken at about US$8.65 billion and keeping open the possibility of a future stock market listing for the unit.

Kraken is headquartered in London and New York, with regional hubs in Paris, Tokyo, and Melbourne, serving utilities such as EDF Energy, E.ON Next, Origin, National Grid, and Tokyo Gas.

The demerger could enable Kraken’s public listing in the next one to two years, potentially in London or New York.

Founder and CEO Greg Jackson says there is a very real possibility of Kraken listing its shares in the medium term, contingent on investor support and suitable exchanges.

The demerger aims to accelerate Kraken’s global expansion and may lead to a stock market listing in London or New York around September next year.

The deal underscores Kraken’s scale and potential to grow as an independent entity with strong backers and leadership, positioning it as a potential UK-founded success story.

Octopus Energy remains the UK’s largest household energy supplier, a status aided in part by Kraken’s real-time pricing and flexible tariffs.

Kraken is an AI-driven platform that automates customer service and billing for energy companies, optimizing energy usage and rewarding consumers for reducing demand at peak times, serving about 70 million accounts globally.

Kraken licenses its software to UK and international energy suppliers, including E.ON, EDF, and Tokyo Gas, highlighting its role as a platform for real-time pricing to lower bills.

Beyond Octopus, Kraken counts EDF, E.ON Next, TalkTalk, and National Grid US among its clients, having originally been built for Octopus and expanding to others.