Octopus Energy, one of Britain’s leading private companies, has solidified its position in the market with a recent series of share trades valuing the company at an impressive $9bn (£7.2bn). This significant valuation puts Octopus Energy on track to become a rare ‘decacorn’ company – referring to companies worth at least $10bn.
Sources within the City have revealed that Generation Investment Management, chaired by former US vice president Al Gore, and the Canada Pension Plan Investment Board (CPPIB) have collectively spent approximately £300m to increase their stakes in Octopus Energy. This move highlights the growing interest and confidence in the company.
The current valuation is a 15% increase from just five months ago, when Octopus Energy completed a successful fundraising round that valued the company at $7.8bn (£6.2bn). This impressive growth can be attributed to the company’s founder, Greg Jackson, who has successfully steered Octopus Energy to success since its establishment just nine years ago.
In recent years, Octopus Energy has made strategic acquisitions that have significantly bolstered its market presence. One notable acquisition was that of Bulb Energy, which was acquired after collapsing into temporary government ownership three years ago. This move added hundreds of thousands of new customers to Octopus Energy’s portfolio.
Moreover, the recent acquisition of Shell’s household energy arm in the UK has further cemented Octopus Energy’s position as a leading energy supplier in the country. This deal has also contributed to the company’s impressive growth in customer demand.
Octopus Energy’s innovative technology outsourcing platform, Kraken, has also been a key driver of its success. With a rapidly growing customer base, Kraken now services 54 million customer accounts, accounting for more than half of the company’s target of 100 million customers globally by 2027.
The recent secondary share sale, which is set to generate significant profits for selling shareholders, has resulted in CPPIB holding a 12% stake in the company, while Generation Investment Management now holds 13%. Octopus Energy did not provide a comment on the matter.
This latest development further solidifies Octopus Energy’s position as a major player in the energy market and highlights the company’s potential for continued growth and success in the future.
