Octopus Energy raises funding from Galvanize and Lightrock at $9 billion

Octopus Energy Group secured new investment from Galvanize Climate Solutions and Lightrock at a $9 billion valuation, a 15% increase from its December 2023 raise, to fund US expansion of its Kraken platform. The deal signals continued climate-tech investor appetite relevant to Indian clean-energy software and retail ventures.

UK-based Octopus Energy Group secured new backing from sustainability-focused investors Galvanize Climate Solutions and Lightrock at a $9 billion valuation, a 15% increase from its $800 million capital raise in December 2023. Founded in 2016, Octopus comprises 10 businesses across the energy value chain in 18 countries, serving over 7 million customers and 40,000 businesses. Its portfolio includes a retail brand supplying nearly 8 million households and its machine-learning platform Kraken, which automates and streamlines the energy supply chain.

Clean-energy technology firms and climate-focused investors are affected, as the raise underscores capital availability for scaling energy software and retail platforms. The investment follows funding from existing investors Generation Investment Management and the Canada Pension Plan Investment Board. Galvanize, founded in 2022 by Tom Steyer and Hall Capital Partners founder Katie Hall, invested through its Innovation + Expansion Fund, while London-based Lightrock manages capital across public and private markets with a focus on climate innovation.

Clean-energy and climate-tech firms should monitor how Octopus deploys funds to expand in the US, particularly the growth of its Kraken platform in US markets. Investors and operators should track how a rising $9 billion valuation reflects appetite for energy software and retail. Indian clean-energy software and retail ventures should watch how machine-learning platforms like Kraken and growth-equity climate funds shape financing and competitive dynamics in the energy value chain.

Key figure — Company valuation: $9 billion, up 15% from December 2023