Kraken Technologies
Kraken Technologies is a utility operating system developed by Octopus Energy and moved toward an independent spin-off, with enterprise customers including EDF, E.ON, Origin and Tokyo Gas.
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Podcast Episode
🎙️ Deep Dive
Octopus Energy: the tech company disguised as a utility
Listen to the episodeAbout Kraken Technologies
Kraken Technologies was built as Octopus Energy's internal platform to manage complex retail energy processes: customer management, billing, smart meters, dynamic tariffs, customer care, field operations, asset optimisation and flexibility. As Octopus scaled, Kraken became an enterprise product sold to global utilities and infrastructure operators. Its strategic relevance comes from turning data, automation and AI into an operating system for utilities that need to modernise legacy stacks and manage the energy transition. As of FY25, Kraken manages 44.2 million live accounts, has over 73 million contracted accounts, £422 million in contracted ARR and a reported $8.65 billion valuation at spin-off.
The Story
Kraken was built inside Octopus Energy starting in 2016-2017 to help the group operate better in retail energy. Formally incorporated as Kraken Technologies Limited in 2019, the platform was tested on millions of retail customers before becoming a B2B product sold to global utilities.
How Kraken Technologies works
Business Model
Enterprise SaaS / platform licensing for utilities, energy retailers, infrastructure operators and adjacent regulated sectors.
Revenue Model
Contracted annual recurring revenue linked to platform usage, account migration, modules adopted and related software services.
Products & Services
Key Products
- Kraken utility operating system
- Customer management
- Billing and payments
- Smart meter data platform
- Dynamic pricing engine
- Field operations software
- Asset optimisation
- Flexibility and VPP orchestration
- Grid services software
- API and data platform
Core Use Cases
- Migrating millions of utility customer accounts
- Reducing cost-to-serve
- Launching smart tariffs
- Managing customer service workflows
- Orchestrating residential flexibility
- Managing EV charging, batteries, heat pumps and solar assets
Market & Clients
Key Customers
Large utilities, energy retailers, water utilities, grid and infrastructure operators, and energy groups with millions of accounts to migrate or modernise.
Geographic Presence
How Kraken Technologies competes
Competitors
How Kraken Technologies grows
Moat (Defensibility)
Proof at scale inside Octopus Energy, account scale (44M live / 73M contracted), enterprise references, utility-specific workflows, data infrastructure, flexibility orchestration and regulatory know-how.
Regulatory Context
Kraken operates in regulated utility markets and may be exposed to data protection, cybersecurity, operational resilience, energy regulation and AI governance requirements, especially for smart grids and critical infrastructure.
Key Risks
- Long enterprise sales and migration cycles
- Complex implementation risk
- Customer concern about ties to Octopus Energy retail
- Competition from incumbent software vendors and hyperscalers
- Regulatory risk if AI enters critical infrastructure workflows
- Privacy risk around smart meter and device data
Strategic Insights
- The distinction between live accounts (44.2M) and contracted accounts (>73M) is essential to read Kraken's scale correctly.
- The spin-off improves perceived neutrality toward incumbent utilities that may be customers but also competitors of Octopus.
- The residential VPP (>2 GW, 500k devices) moves Kraken beyond billing into coordination of distributed energy assets.
- Kraken's AI/data potential grows together with regulatory responsibility around privacy, auditability and critical infrastructure.
Funding & Investors
Latest Valuation
Funding Rounds
- - : $1 billion
Lead: D1 Capital Partners
Key Investors
Founding Team
Key Executives
- Amir Orad
- Gavin Patterson
- Tim Wan
Key Metrics
Lessons from Kraken Technologies
- Build software around real and repeated operational problems.
- Use an internal customer large enough to stress-test the system.
- Do not sell incumbents only technology: sell migration, trust and operational risk reduction.
- When the product enters critical infrastructure, governance and compliance become part of the value proposition.
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Read AnalysisSources
- Octopus Energy Group to spin out Kraken at valuation of $8.65bn — Kraken Technologies
- Octopus Energy Group to spin off Kraken — Octopus Energy
- Octopus Energy Group Annual Report FY25 — Octopus Energy Group
- Kraken Hits 2GW Residential Virtual Power Plant — Kraken Technologies
- UK's Octopus Energy nears Kraken stake sale — Reuters