Origin Energy has stated that it will keep its equity stake in Kraken as a result of the main independent capital raising that significantly changes the ownership structure of Kraken Technologies.
The deal is a significant move towards the process of separating Kraken from Octopus Energy officially, and at the same time, it is a step in the direction of better positioning of the company as a global energy technology leader.
The announcement details a series of coordinated agreements that provide Kraken with new capital, facilitate international expansion, and are lined up for a mid-2026 target date for the structural separation. The transactions also maintain the strategic position of Origin regarding both Kraken and Octopus Energy.
Origin Energy retains Kraken equity stake after capital raise
What Does The Kraken Standalone Capital Raising Involve?
The capital raising for Kraken alone will result in US$1 billion equity raised, coming from a mixture of new investors and current shareholders. This is the first independent fundraising of the year for Kraken, and it also defines a new standalone valuation of US$8.65 billion, which includes cash retained in the business.
The capital raised will cover the legal and financial separation of Kraken from Octopus Energy. Out of the total amount raised, US$150 million will stay within Kraken, while US$850 million will be given to Octopus Energy to help its future growth strategy.
Why Is Origin Energy Investing US$140 Million?
Origin Energy is going to pump in US$140 million, which is roughly the same as $210 million, as part of the Origin Energy Kraken capital raising.
The investment shall include taking part in both a primary equity raise and a secondary sale process, thereby guaranteeing the continued economic interest of the Origin, which is still substantial.
This undertaking is a manifestation of the long-standing belief of the Origins in the technology platform of Kraken and its global reach. Origin has identified Kraken as a key strategic resource that will not only enable but also drive the overall digital transformation of the energy retail sector.
Origin Energy invests US$140 million in Kraken
How Does Exclusivity Waiver Protect Origin’s Stake?
The agreement over the exclusivity rights between Origin and the Kraken platform, in Australia, has been resolved between the parties involved and with the consent of both parties.
It has also been agreed on that the total equity interest of 1.5% in Kraken, which is new, will be partly offset by the percentage-wise blocking of Origin through the new shares issued via capital raising. The deal allows Kraken Utilities to license its platform in Australia without limitations, thus sharing the revenue with Origin.
After the deal is completed, the direct interest of Origin will be 19.6% of the total, i.e., plus an indirect interest of 3.1% through its 22.7% stake in Octopus Energy.
What Does The Valuation Say About Kraken’s Growth?
The firm valuation of $8.65 billion not only sets a price tag on Kraken as an independent company but also gives the first clear picture of the market for such an entity. The valuation is indicative of a period of rapid growth in which contracted annual recurring revenue has more than doubled over the last 18 months.
Kraken has also entered into a significant licensing deal with a major global energy supplier, resulting in an increase of more than 10 million customers on its platform. The strategic customer will also be involved in the equity raising, thereby enhancing Kraken’s commercial and financial base.
Kraken and Octopus Energy ownership structure before and after the standalone transaction
How Does This Impact Octopus Energy And Origin?
After the separation, Octopus Energy will own 13.7% of the shares in Kraken and will also be the first customer. Besides, Origin will keep its 22.7% strategic stake in Octopus Energy, thus maintaining an indirect interest in both firms.
According to Origin CEO Frank Calabria, the negotiations have set the stage for independent development while still securing Origin’s position in the equity market. He pointed out that Kraken is already working towards its goal of having 100 million customer accounts and is doing so ahead of schedule.
What Happens Next For Kraken And Origin?
The transactions remain subject to regulatory approvals and rulings. Formal separation of Kraken from Octopus Energy is anticipated in mid-2026, at which point both entities will operate with independent capital structures and growth strategies.
Origin believes the agreements position Kraken and Octopus Energy to unlock their next growth phase, supported by strong management teams, robust funding, and expanding global demand for digital energy platforms.
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Frequently Asked Questions
Q1: What is the size of Kraken’s standalone capital raising?
A1: Kraken is raising US$1 billion in its first standalone equity funding round.
Q2: How much is Origin Energy investing in Kraken?
A2: Origin Energy will invest US$140 million, equivalent to approximately $210 million.
Q3: What is Origin’s total economic interest in Kraken after the deal?
A3: Origin’s total economic interest will remain 22.7%, combining direct and indirect holdings.
Q4: When is Kraken expected to formally separate from Octopus Energy?
A4: The separation is targeted for mid-2026, subject to regulatory approvals.
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