The British Business Bank, the UK government's economic development bank, announced on January 24, 2026, a landmark £25 million investment in Kraken Technologies as part of the energy technology company's $1 billion demerger from Octopus Energy. The investment represents the bank's largest direct stake in a single business to date.
Kraken Technologies, which provides a cloud-based platform for energy suppliers and utilities, is being spun out of Octopus Energy Group in a transaction that values the technology subsidiary at approximately $1 billion. The platform serves millions of customer accounts and is used by energy suppliers globally to manage billing, customer service, and smart grid operations.
The British Business Bank's substantial investment signals confidence in the UK technology sector and Kraken's growth potential as energy markets worldwide transition toward renewable sources and require more sophisticated software platforms. The bank typically makes smaller investments across a diversified portfolio, making this £25 million commitment particularly notable.
Kraken Technologies has experienced rapid growth as energy suppliers seek modern technology platforms capable of handling complex pricing models, distributed energy resources, and enhanced customer experiences. The company's software-as-a-service model generates recurring revenues and has attracted international clients beyond the UK market.
The demerger structure allows Kraken to operate independently, raise capital for expansion, and potentially pursue strategic partnerships or acquisitions to strengthen its competitive position in the global energy technology market. Industry analysts view the separation as logical given Kraken's distinct business model from Octopus Energy's supply operations.