Founders: Greg Jackson (CEO), Stuart Jackson, James Eddison
Launched: 2016
Headquarters: London
Funding: $2 billion
Valuation: $9 billion
Key technologies: Artificial intelligence, Internet of Things, machine learning
Industry: Energy
Previous appearances on Disruptor 50 List: 1 (No. 8 in 2023)
Octopus Energy, founded by digital entrepreneur and angel investor Greg Jackson in 2016, aims to disrupt traditional utilities with a tech-driven approach utilizing AI, machine learning, cloud computing, and data analytics. The profitable company, which has operations spread across 18 countries, has more than doubled its retail business over the past two years and currently serves over 7.8 million customers and 60,000-plus business accounts. Its Kraken software and data analytics system, which helps utilities track energy usage for efficiency, has been licensed to 54 million international accounts, up from 17 million in 2020, and the target is reaching 100 million by 2027.
Last December, Octopus Energy secured an $800 million funding boost from Al Gore’s renewable and sustainable energy investment firm, Generation Investment Management, and other existing investors. This month, Generation and the Canada Pension Plan Investment Board increased their existing stakes, raising the company’s valuation to $9 billion. In November, Octopus Energy announced a $3.7 billion fund with Japanese utility Tokyo Gas to invest in offshore wind over the remainder of this decade.
The company is actively driving the clean energy revolution on a global scale via acquisitions and licensing deals. Within the past few years, it has commenced operations in several advanced economies such as Australia and Germany. Octopus Energy has ambitious goals for the US market. It procured a Silicon Valley-based AI and machine learning start-up called Evolve Energy in 2020 and established a US subsidiary in Houston, energicenter of the country. To execute its expansion strategy, the company recently signed a licensing agreement to offer its Kraken technology platform to US licensees, starting with North American energy manager Tenaska Power Services in Texas for its battery sites.
According to the International Energy Agency, global investments in energy touched $2.8 trillion in 2023, with around $1.2 trillion invested in clean energy. Renewables’ portion of power production is estimated to increase to 35% by 2025 from the current 29%.
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