What's Happening?
Origin Energy has announced a $210 million investment in the spinout of Kraken, the technology arm of Britain's Octopus Energy. Kraken, which provides energy software to major utilities, is set to become an independent company valued at $12.91 billion following a funding round led by D1 Capital Partners. The spinout will allow Kraken to expand its AI-powered operating system, which currently serves over 70 million accounts globally. Origin Energy will maintain a 22.7% interest in Kraken and has agreed to waive exclusivity for Kraken's services in Australia in exchange for additional equity.
Why It's Important?
This investment marks a significant step in the energy sector's digital transformation, highlighting the growing importance of technology in managing energy resources.
By supporting Kraken's independence, Origin Energy is positioning itself at the forefront of innovation in energy management. The move could lead to enhanced efficiency and customer service in the energy sector, potentially reducing costs and improving sustainability. Additionally, the potential for a Kraken IPO within two years could attract further investment and drive growth in the energy technology market.
What's Next?
With the demerger from Octopus Energy, Kraken is poised for further expansion and innovation. The company may pursue an initial public offering (IPO) within the next two years, which could provide additional capital for growth and development. As Kraken continues to expand its services, other energy companies may follow suit, investing in technology to improve their operations. This could lead to increased competition and collaboration in the energy sector, driving further advancements in energy management and sustainability.
