Octopus Energy valuation grows to over £7bn as backers increase stake

Octopus Energy is now worth more than £7bn after two of the group’s largest shareholders increased their stakes in the business.

The energy and technology group said Generation Investment Management and Canada Pension Plan Investment Board have raised their positions to 13 percent and 12 percent, respectively, raising their valuation by 15 percent to $9 billion (7.2 billion). million pounds sterling).

Octopus is now on the verge of achieving “decacorn” status: this is where a startup is worth $10 billion.

It follows the addition of almost three million British customers to Shell Energy and Bulb after rising energy prices caused turmoil among Britain’s domestic suppliers.

The acquisitions left Octopus Energy as the country’s second-largest energy company, behind British Gas, and the largest electricity supplier.

Since launching eight years ago, the group has raised more than $2 billion from investors and expanded to 18 countries.

Generation IM co-head of private equity Tom Hodges described Octopus as a “generational opportunity” with a “world-class management team.”

Generation IM is chaired by former US Vice President Al Gore.

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Bill Rogers, CEO of CPP Investments, added: “As a pioneering, technology-driven energy company, Octopus Energy has an expanding global footprint and continues to be a leader and innovator in the energy sector, both through its propositions for customers and their support for the global energy transition.’

Octopus Energy said the new investment would be used to boost its presence in the US, where it plans to expand its AI-based Kraken energy technology platform.

Greg Jackson, founder of Octopus Energy, said: “The addition of globally respected long-term investors helps raise our profile in key markets and opens up new opportunities to continue our international expansion.”