Octopus Energy has announced an increase in its valuation to $9 billion (£7.2bn), with existing shareholders Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments) boosting their stakes in the company.
The deal, which represents a 15% increase in valuation since the last investment round, sees Generation Investment Management securing new backing from pension funds in the US and Australia, including Aware Super.
Generation now owns 13% of the Octopus Energy Group, while CPP Investments has increased its stake to 12%.
The investment aims to enhance Octopus Energy’s profile in the US and supports its plans to extend its Kraken technology into American markets, with the company having signed its first deal in Texas in 2023.
Since its launch eight years ago, Octopus Energy has raised over $2 billion (£1.6bn) from global investors and expanded into 18 countries.
Greg Jackson, Founder of Octopus Energy Group, said: “Bringing globally respected long-term investors on board helps raise our profile in key markets and open up new opportunities to continue our international expansion.
“I’m delighted to partner with more pension funds, including Aware Super, and am excited at the prospect of accelerating Octopus and Kraken in North America and beyond, and continuing to invest in technologies that drive a smarter, cheaper energy system.”
Tom Hodges, Co-Head of Private Equity at Generation Investment Management, said: “The company has accelerated ahead of its UK peers in energy and in Kraken has developed the first credible digitisation platform for utilities.”
Bill Rogers, Managing Director, Global Head of Sustainable Energies at CPP Investments, said: “As a pioneering, and tech-enabled energy company, Octopus Energy has an expanding global footprint and remains a leader and innovator in the energy sector, through both its customer propositions and its support of the global energy transition.”
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