Octopus Energy valuation grows to more than £7bn as backers up stake

Octopus Energy is now worth more than £7billion after two of the group’s biggest shareholders upped their stakes in the business. 

The energy and tech group said Generation Investment Management and Canada Pension Plan Investment Board have lifted their positions to 13 and 12 per cent, respectively, thereby lifting its valuation by 15 per cent to $9billion (£7.2billion).

Octopus is now on the cusp of achieving ‘decacorn’ status – this is where a start-up is worth at $10billion.

It follows the onboarding of almost three million UK customers from Shell Energy and Bulb after surging energy prices led to turmoil among Britain’s domestic suppliers.

The takeovers left Octopus Energy as the second-largest overall energy firm in the country, behind British Gas, and the biggest supplier of electricity.

Having launched eight years ago, the group has now raised more than $2billion from investors and expanded in 18 countries.

Co-head of private equity at Generation IM 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.

Bill Rogers, managing director at CPP Investments, added: ‘As a pioneering, and tech-enabled energy company, Octopus Energy has an expanding global footprint and remains a leader and innovator in the energy sector, through both its customer propositions and its support of the global energy transition.’

Octopus Energy said the fresh investment would be used to boost its presence in the US, where it plans to extend its AI-enabled energy tech platform Kraken.

Greg Jackson, founder of Octopus Energy, said: ‘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.’