Clean energy startup Octopus Energy raises $800 million in funding to accelerate growth
UK-based Octopus Energy Group announced on Monday that it has raised $800 million in the latest funding round from existing investors. The new investment values the eight-year-old clean energy company at $7.8 billion (£6.2bn), marking a substantial 60% increase from its last funding round in December 2021.
The round is backed by major players in the industry, including Australian and Japanese giants Origin Energy and Tokyo Gas, as well as the Canada Pension Plan Investment Board (CPP Investments), one of the world’s largest pension funds. Additionally, sustainability-focused investors, Generation Investment Management, have shown their support.
Octopus will use the fresh capital injection to accelerate its international growth, particularly focusing on expanding low-carbon technologies, with a special emphasis on heat pumps. The anticipated outcome of this investment is the creation of 3,000 green jobs in the UK alone by 2024.
This development comes on the heels of various noteworthy announcements from Octopus Energy Group worldwide. Notably, the company is venturing into Africa with its inaugural project—a wind and solar farm in Sierra Leone, in partnership with Idris Elba.
This marks the group’s presence on its fifth continent and eighteenth operating country. Octopus has recently completed the acquisition of Shell’s Energy and Broadband business in the UK and Germany. In the realm of clean transport, the group has secured a substantial £550 million funding facility from Lloyds Bank for Octopus Electric Vehicles.
In the UK, Octopus has earned the prestigious “Which? Recommended” designation for an unprecedented six years in a row and continues to lead Trustpilot ratings for energy suppliers. The company has received multiple awards, including recognition as one of TIME Magazine’s ‘100 Most Influential Companies.’ In a statement, Octopus Energy founder and CEO Greg Jackson 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,” Jackson added.
Octopus Energy’s commitment to smart technology has allowed over a million UK customers to save money during the energy crisis. The company’s investment in renewable energy has enabled customers to benefit from cost-effective power during times of abundant renewables, resulting in almost £10 million returned to customers through Octopus’s Saving Sessions in the last year.
To support customers during the winter, Octopus has doubled its OctoAssist Fund to £30 million, offering support during the energy crisis by keeping energy prices below the cap, providing standing charge holidays, and distributing nearly 50,000 electric blankets free of charge to customers in need.
Octopus Energy Group’s Kraken technology platform has witnessed remarkable success, with an increase from 17 million accounts two years ago to over 52 million today. Kraken supports major players in UK energy retail, including E.ON, EDF, and Good Energy, along with clients in Europe, Japan, and Australia. It is also licensed to water companies, electricity networks, renewable generators, and large-scale battery operators globally.
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.”
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.”
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.”