Octopus Energy's Valuation Surpasses $9 Billion Following Recent Investment Round

Image Credit: Octopus Renewables

Generation Investment Management and the Canada Pension Plan Investment Board have escalated their investments in Octopus Energy, elevating the British energy titan's market valuation beyond the $9 billion threshold.

In a recent financial move, Generation Investment Management has expanded its ownership to a 13% stake in Octopus Energy through an additional investment of $340 million. This round also saw contributions from Aware Super, an Australian pension fund, and another undisclosed U.S. pension fund.

Simultaneously, the Canada Pension Plan Investment Board has upped its stake to 12%, injecting an unspecified amount into Octopus Energy, as declared today.

These latest investments follow a substantial $800 million funding round in December of the previous year. Since its inception eight years ago, Octopus Energy has successfully amassed over $2 billion in capital from worldwide investors.

Now operating in 18 countries globally, Octopus Energy Group has reported a 15% increase in its market value since the last funding round, with its current estimated valuation now standing at $9 billion (£7.2 billion).

"Bringing globally respected long-term investors on board helps raise our profile in key markets and opens up new opportunities to continue our international expansion," said Octopus Energy Group's founder and CEO 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."

The firm said the two deals are expected to boost Octopus Energy Group's profile in North America as it looks to expand its tech platform Kraken into US markets.

Tom Hodges, co-head of private equity at Generation Investment Management, described Octopus Energy as "a generational opportunity."

"The company has accelerated ahead of its UK peers in energy and, in Kraken, has developed the first credible digitisation platform for utilities," he said. We're backing the world-class management team and the thousands of talented people in the Octopus Energy Group as they transform multiple industries at once, and it's a pleasure to work with pension funds, including Aware Super, to deliver this huge potential."