Octopus Energy’s valuation has jumped to $9bn (£7.16bn) after existing shareholders, including a fund chaired by former US Vice President Al Gore, increased their stake in the business.
The deal saw Generation Investment Management, chaired by the US politician and prominent climate activist, and Canada Pension Plan Investment Board up their stakes in the British energy company. The two groups now own 13% and 12% of Octopus Energy respectively.
The increased stakes brought Octopus Energy’s valuation up 15% from its last investment round, putting the firm just shy of a so-called ‘decacorn’ valuation of $10bn or more.
Generation Investment Management, which backs firms in the sustainability space, increased its stake in Octopus Energy after securing new backing from pension funds in the US and Australia including Aware Super.
The extra investment from the North American backers will be used to increase the profile of Octopus Energy in the US. Octopus signed its first deal in Texas in 2023 and is looking to expand the American reach of its Kraken energy platform.
“Bringing globally respected long-term investors on board helps raise our profile in key markets, and open up new opportunities to continue our international expansion,” said Octopus Energy founder Greg Jackson.
“I’m delighted to partner with more pension funds, including Aware Super, and am excited at the prospect of accelerating Octopus and Kraken in North America and beyond, and continuing to invest in technologies that drive a smarter, cheaper energy system.”
Founded in 2015, Octopus Energy – part of Octopus Group which includes Octopus Ventures, Octopus Legacy, Octopus Money and more – has become one of the largest energy providers in the UK.
In late 2022, Octopus Energy added the 1.5 million customers of collapsed rival Bulb.
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