UK Government Takes £25 Million Stake in Kraken Technologies to Support London IPO Ambitions
Britain invests in Octopus Energy’s spun-out tech arm as part of broader strategy to retain high-growth companies and strengthen UK capital markets
The UK government has unveiled a £25 million investment in Kraken Technologies, the artificial intelligence-powered technology business spun out from Octopus Energy, in a strategic move designed to encourage the company to list on the London Stock Exchange rather than overseas.
The stake is being acquired through the British Business Bank, a state-owned economic development lender, as part of a wider £125 million initiative aimed at supporting life sciences, deep-tech and artificial intelligence businesses across the United Kingdom.
The government’s commitment comes amid intense competition from U.S. markets for initial public offerings by fast-growing technology firms and reflects a broader effort to promote domestic capital market activity.
Kraken, valued at about $8.65 billion in its most recent funding round, operates a widely licensed cloud-based platform that manages tens of millions of energy and utility customer accounts and is seen as one of the UK’s most promising tech success stories.
Its software is already deployed across more than 70 million accounts worldwide, underpinning billing, analytics and grid services for major utilities.
The company’s founder and chairman, Greg Jackson, has publicly stated a preference for a London listing, but shareholders also see attractive opportunities in New York, making the final choice a matter of global investor strategy.
Business Secretary Peter Kyle said the government’s investment was intended to back innovative British companies with strong growth potential and to help position London as a competitive venue for high-tech IPOs.
He emphasised that the funding carries no formal requirement for Kraken to list domestically, but that strengthening the UK’s ecosystem for scaling technology businesses was a key priority.
The stake by the British Business Bank follows reforms to UK listing rules aimed at making London more appealing to fast-growing firms, though some executives have warned that U.S. markets still offer deeper capital pools.
Investors in Kraken include global firms such as D1 Capital Partners, Fidelity and the Ontario Teachers’ Pension Plan, underscoring the company’s international backing as it weighs its public listing options.
The stake is being acquired through the British Business Bank, a state-owned economic development lender, as part of a wider £125 million initiative aimed at supporting life sciences, deep-tech and artificial intelligence businesses across the United Kingdom.
The government’s commitment comes amid intense competition from U.S. markets for initial public offerings by fast-growing technology firms and reflects a broader effort to promote domestic capital market activity.
Kraken, valued at about $8.65 billion in its most recent funding round, operates a widely licensed cloud-based platform that manages tens of millions of energy and utility customer accounts and is seen as one of the UK’s most promising tech success stories.
Its software is already deployed across more than 70 million accounts worldwide, underpinning billing, analytics and grid services for major utilities.
The company’s founder and chairman, Greg Jackson, has publicly stated a preference for a London listing, but shareholders also see attractive opportunities in New York, making the final choice a matter of global investor strategy.
Business Secretary Peter Kyle said the government’s investment was intended to back innovative British companies with strong growth potential and to help position London as a competitive venue for high-tech IPOs.
He emphasised that the funding carries no formal requirement for Kraken to list domestically, but that strengthening the UK’s ecosystem for scaling technology businesses was a key priority.
The stake by the British Business Bank follows reforms to UK listing rules aimed at making London more appealing to fast-growing firms, though some executives have warned that U.S. markets still offer deeper capital pools.
Investors in Kraken include global firms such as D1 Capital Partners, Fidelity and the Ontario Teachers’ Pension Plan, underscoring the company’s international backing as it weighs its public listing options.
