* $1bn Kraken investment round brings world-class investors, led by D1 Capital Partners, and joined by other notable investors such as Ontario Teachers' Pension Plan, Fidelity International, and Durable Capital Partners

* Move paves way for Kraken's formal independence and demerger from Octopus

London - Octopus Energy Group today announces the first standalone investment round into its world-leading technology company, Kraken.

The funding round is led by D1 Capital Partners, a leading global investment firm, alongside other new investors such as Fidelity International, Durable Capital Partners and Ontario Teachers' Pension Plan Board, via its late stage growth business Teachers' Venture Growth.

Octopus Energy Group's existing investors continue to back the Group, supporting both Octopus and Kraken as they enter their next phase of growth.

This round sees new and existing investors acquiring c. $1bn of Kraken equity to fund both Octopus and Kraken. Investors led by Octopus Capital are also injecting a further $320m into Octopus for innovation and growth. Collectively, these almost double Octopus Energy Group's already strong balance sheet. After the split, Octopus will retain a 13.7% stake in Kraken.

Launched within Octopus Energy Group, Kraken's AI-powered operating system is now contracted to serve over 70 million accounts worldwide through licensing agreements with major utilities.

Over the past decade, Kraken has grown into the world's most advanced, proven data-driven operating system for utilities, processing over 15 billion new data points a day.

Kraken announced in September that its contracted annual revenue exceeded $500 million - growing 4x in just three years.

The demerger enables Kraken to operate as a fully independent technology platform for utilities worldwide, accelerating global adoption and deepening partnerships, while allowing Octopus Energy Group to focus on scaling its consumer, generation, and clean technology businesses.

Following the demerger, Kraken will operate with a separate cap table, independent governance, and leadership.

Greg Jackson, Founder of Octopus Energy Group, said: "Kraken is in a class of its own, in terms of technology, capability, and scale. As an independent company with world-class backers and outstanding leadership, it will be free to grow even faster and is set to be a true UK-founded success story.

"Having incubated Kraken, Octopus is a powerhouse of innovation and technology, and will now have even more horsepower to deliver the transformation of energy globally. With over 10 thousand staff, 11 million customers, $10bn of generation under management, and businesses from EV leasing to heat pump design and manufacture, Octopus is set for even greater things over the coming years.

"With a 4.8/5 Trustpilot rating in 7 countries, Octopus has proven that energy can be transformed - and it will now be free to compete even more vigorously against incumbents."

Amir Orad, CEO of Kraken, said: "Becoming an independent company gives Kraken the focus and freedom to scale as a neutral, global operating system for utilities, with Octopus Energy remaining a key innovation partner and forward-thinking global customer.

"I'm excited to welcome our new investors, led by D1. With their backing, we can accelerate our impact on the energy transition, deepen partnerships with utilities worldwide, and help modernise the energy system at global scale - our goal being to positively impact a billion lives within a decade."

Dan Sundheim, Founder and CIO of D1 Capital Partners, said: "We believe Kraken is adding significant value to utilities, as reflected in its customer satisfaction, stickiness, and growth. The strength of its leadership team gives us confidence in its ability to continue executing on the large opportunity to modernise utility operations. We are excited to partner as Kraken begins a new chapter as an independent company."

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Notes to editors:

Press Contacts

Octopus Energy Group

press@octoenergy.com

+44 (0)20 4530 8369

About Octopus Energy

Octopus Energy is a global clean energy and technology business, driving the affordable, green energy system of the future. Under its own retail brand, Octopus delivers world-class customer service and cutting-edge energy products to 11 million households globally.

The company is driving the electrification of heat and transport through smart tariffs and innovative clean tech, with operations spanning 27 countries and the entire energy value chain. It operates a £7 billion renewables portfolio as well as thriving EV leasing, heat pump, and solar businesses.

Backed by pension funds, investors and energy giants, Octopus Energy Group businesses deliver cheaper, greener energy and cutting-edge tech to countries and customers worldwide.

For more information, check out our website.

About Kraken

Kraken is the most-loved and proven operating system for energy. Powered by Utility-Grade AI(TM) and deep industry expertise, we help utilities transform their tech and operations so they can lead the energy transition.

Kraken supports 70+ million accounts worldwide, from households and businesses to large industrial customers, enabling utilities to innovate faster, unlock revenue, make energy more affordable for customers, and create a smarter, more resilient grid. Trusted by leading utilities like EDF Energy, E.ON Next, Octopus Energy, Origin, Plenitude, Portsmouth Water, National Grid and Tokyo Gas, Kraken consistently delivers measurable results, including up to 40% greater efficiency and 3× improved customer satisfaction.

Our operating system delivers better outcomes from generation, through distribution, to supply -- unifying data, automation and AI that's designed and constantly optimized for utilities in one platform. With a constant stream of new software releases, our clients are equipped for the future. And with an unparalleled track record for speedy, seamless migrations, we're helping utilities around the world power the possible.

Headquartered in London and New York, with regional centers in Paris, Tokyo and Melbourne, our mission is to make a big, green dent in the universe and improve one billion lives.

For more information, check out our website.