Al Gore fund boosts Octopus Energy stake as valuation soars to £7.2bn

Business

Octopus Energy has cemented its status as one of Britain’s most significant private companies after a series of share trades valuing it at $9bn (£7.2bn).

Sky News has learnt that Britain’s second-largest domestic energy supplier is now close to attaining a rare ‘decacorn’ valuation – referring to companies worth at least $10bn – after two shareholders increased their stakes in the company.

City sources said on Tuesday that Generation Investment Management – chaired by former US vice-presideny Al Gore – and the Canada Pension Plan Investment Board (CPPIB) had spent approximately £300m buying shares from other investors in Octopus Energy.

The valuation is 15% higher than a fundraising just five months ago which saw it valued at $7.8bn (£6.2bn).

The latest deal underlines the phenomenal growth of Octopus Energy under its founder Greg Jackson.

Established just nine years ago, the company has been bolstered in scale by the acquisition of Bulb Energy, which collapsed into temporary government ownership three years ago.

More recently, it struck a deal to buy Shell’s household energy arm in the UK, which added hundreds of thousands of new customers.

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Octopus Energy’s technology outsourcing platform, Kraken, is said to be worth billions of pounds after demonstrating strong growth fuelled by customer demand.

Kraken now services 54m customer accounts, more than halfway to Octopus Energy’s target of 100m globally by 2027.

The secondary share sale, which will crystallise big windfalls for a number of selling shareholders, leaves CPPIB with a 12% stake and Generation Investment Management with 13%

Octopus Energy declined to comment.

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