Octopus Energy Group has announced $800m (£625m) additional investment from its existing shareholders – valuing the company at $7.8bn (£6.2bn), a 60% increase since its previous investment round in December 2021.
Australian and Japanese giants Origin Energy and Tokyo Gas, one of the world’s largest pension funds, Canada Pension Plan Investment Board (CPP Investments), and sustainability-focused investors, Generation Investment Management are all participating in this round.
Greg Jackson, Founder of Octopus Energy Group, said: “Octopus Energy’s focus on customer service and technology has not only driven us to market leadership in UK power, but we’ve built the UK’s leading specialist electric vehicle leasing business, in just two years we’ve almost doubled our renewable generation portfolio to $7.6bn (£6bn), and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million.
“We remain obsessive about customers – we’ve been awarded “Which? Recommended” an unprecedented 6 years in a row and according to consultants Bain**, Octopus Energy is rated 44 points higher than the next best company.
“2023 saw us launch into heat pump installation and manufacture our own models – we now need to drive real scale. With the renewed commitment seen at COP and our model proven, we will invest to accelerate our growth and create a truly global clean energy giant.”
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.”
Bill Rogers, Global Head of Sustainable Energies at CPP Investments, said: “Octopus’ global footprint has scaled significantly, led by the company’s exceptional team, leading Kraken technology platform and innovative customer proposition. We’re delighted to further our investment in Octopus and enable the expansion of their future energy solutions to many more customers around the world.”
Nobuhiro Sugesawa, Chief Digital Officer at Tokyo Gas, comments: “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.”
Octopus has just completed the acquisition of Shell’s Energy and Broadband business in the UK and Germany, and in clean transport the group has secured a £550m funding facility from Lloyds Bank for Octopus Electric Vehicles.
Octopus Energy Group’s Kraken technology platform has seen huge success, from 17 million accounts two years ago, to over 52 million today. In UK energy retail, Kraken supports E.On, EDF and Good Energy in the UK as well as clients in Europe, Japan and Australia. Kraken is also licensed to water companies, electricity networks, renewable generators and large scale battery operators across the world.
Images courtesy of Octopus Energy.