Octopus tech arm valued at $9bn ahead of spin off

Core Insights - Octopus Energy has become the UK's largest household energy supplier, surpassing British Gas earlier this year, with over seven million customers and a market share of approximately 24% [6][3] - The tech arm, Kraken, has been valued at nearly $9 billion (£6.4 billion) following a significant investment from American backers, including D1 Capital Partners and Fidelity International, who are contributing about $1 billion [1][2] - Octopus Energy plans to fully separate its Kraken division to accelerate global growth, aiming to serve over a billion people in the next decade [4][5] Investment and Valuation - The recent fundraising round will allow Kraken to retain a 13.7% stake under Octopus Energy, while existing investors, including staff, continue to support the business [3] - Kraken is now one of the UK's most valuable technology businesses, generating annual revenue of $500 million [5][3] Future Plans - There are discussions about a potential public listing for Kraken in London or New York, although immediate plans to float the business have been dismissed by Octopus Energy's leadership [3][6] - The CEO of Kraken emphasized that becoming an independent company will provide the focus and freedom needed to scale as a global operating system for utilities, with Octopus Energy remaining a key innovation partner [5][7] Technology and Operations - Kraken's software is utilized by utility firms to manage accounts for over 70 million customers, showcasing its significance in the energy sector [8] - The technology is described as the "secret sauce" of Octopus Energy, linking customers and suppliers through a complex data-driven system [7]