Major entities such as Origin Energy, Tokyo Gas, the Canadian Pension Plan Investment Board (CPP Investments), and Generation Investment Management participated in the funding round
(Credit: MICHAEL WILSON on Unsplash)
Octopus Energy Group, a power supplier in the UK and the proprietor of the Kraken technology platform, has unveiled a substantial additional investment of $800m (£625m) from its current shareholders.
This fresh infusion of capital positions the private company at a valuation of $7.8 billion (£6.2 billion), marking a notable 60% increase since the previous investment round in December 2021.
Participating in this round of investment are major entities such as Origin Energy and Tokyo Gas from Australia and Japan, respectively. Additionally, the Canadian Pension Plan Investment Board (CPP Investments), one of the world’s largest pension funds, and sustainability-focused investors, Generation Investment Management, are also contributing to this funding initiative.
Origin Energy CEO Frank Calabria said of the investment: “The success of Octopus since our initial investment in May 2020 has exceeded all expectations and cemented our belief in its unique capabilities and strong platform for future growth.”
Tokyo Gas chief digital officer Nobuhiro Sugesawa said: “Tokyo Gas has been advancing the retail electricity business in Japan through our joint venture, TG Octopus Energy, with Octopus Energy and most recently, we have started cooperating in renewable energy investments in Europe.
“Tokyo Gas believes that technology innovation is essential for future corporate growth. Through our partnership with Octopus Energy, we aim to provide our customers with services using the latest technology and clean energy. We look forward to growing with Octopus Energy.”
This announcement comes on the heels of several noteworthy developments by Octopus Energy Group on the global stage. Notably, the group has embarked on its inaugural project in Africa, involving the establishment of a wind and solar farm in Sierra Leone, undertaken in collaboration with actor Idris Elba. This venture marks the group’s entry into its fifth continent and 18th operating country.
In addition to its international initiatives, Octopus Energy Group has recently concluded the acquisition of Shell’s Energy and Broadband business in the UK and Germany. In the realm of clean transport, the group has secured a substantial £550m funding facility from Lloyds Bank for Octopus Electric Vehicles.
Octopus’s strategic investments in smart technology have empowered over a million customers in the UK to make savings during the energy crisis. Over the past year, nearly £10m has been returned to customers through Octopus’s Saving Sessions, contributing to the reduction of demand on the grid during peak times.
In an effort to provide robust support to customers during the winter season, Octopus has recently bolstered its OctoAssist Fund to £30m, effectively doubling its capacity. This brings the total support extended during the energy crisis to nearly £200m.