Octopus Energy valuation increases 15 per cent

Origin Energy Limited (Origin) advises that two Octopus Energy shareholders have increased their ownership interest in the company, executed at a valuation of US$9 billion (GBP7.2 billion).

The US$370 million ( GBP300 million) investment by Generation Investment Management (GIM) and the Canada Pension Plan Investment Board (CPP Investments) increases the global technology and energy company's valuation by 15 per cent from the investment round in December 2023, when Origin increased its interest to approximately 23 per cent.

The investment from GIM was backed by Australia's Aware Super and a large public pension fund in the United States, and increases its ownership interest in Octopus to 13 per cent, from 11 per cent. CPP Investments increased its interest in Octopus to 12 per cent, from around 10 per cent. There is no change to Origin's ownership interest in Octopus Energy.

Origin CEO Frank Calabria said, 'This latest investment and the increased valuation is further confirmation that Octopus Energy is seen as one of the world's leading energy and technology companies, with a rapidly expanding retail footprint, operations spanning 18 countries, and with Kraken now clearly established as the world's preeminent technology platform to transform energy and utilities.

'From the outset, Origin has held a deep conviction in the attractiveness and potential of Octopus' unique capabilities and Kraken technology, supported by a highly capable management team. We are pleased to see a similar confidence from both existing and new investors, with their investment and profile providing for Octopus' growth ambitions in key markets. We continue to believe Origin's investment in Octopus will be an important driver of future growth,' Mr Calabria said.

Origin initially acquired a 20 percent interest in Octopus in May 2020, at the same time agreeing to license its proprietary software platform Kraken to transform Origin's retail operations, with the aim of delivering superior customer service at a lower cost.

Octopus has grown rapidly from its inception in 2015 to become the UK's largest electricity retailer and second-largest natural gas retailer, underpinned by its award-winning customer experience, low-cost operating model, and Kraken platform. Under its own retail brand, Octopus Energy added more than 400,000 customer accounts in the first quarter of calendar 2024, and now delivers energy products to some 7.7 million households globally.

Kraken has continued to demonstrate its growing appeal as the preferred technology platform for energy and utilities globally. More than 54 million customer accounts are contracted to be on Kraken, positioning Octopus more than half-way to its target of 100 million customer accounts contracted to the platform by 2027.