Image Credit: Octopus Energy
In a remarkable development, Octopus Energy has just announced a game-changing $800 million investment infusion from its steadfast group of shareholders, propelling the company into an astonishing valuation of $7.8 billion. This staggering 60% surge in valuation comes hot on the heels of its rapid expansion into many fresh markets just a year after its previous investment round in December 2021.
This electrifying influx of capital is set to be a catalyst for Octopus Energy's ambitious global expansion plans. The company is gearing up to substantially impact the global energy landscape with bold commitments aligned with COP28 objectives.
One of the key highlights of this funding round is Octopus Energy's commitment to creating a whopping 3,000 new green jobs within the UK in the upcoming year. But that's just the beginning; it will also pave the way for the widespread adoption of cutting-edge heat pumps and renewable energy solutions across various international markets.
The roster of contributors in this groundbreaking funding round reads like a who's who of energy visionaries. Origin Energy, Tokyo Gas, Canada Pension Plan Investment Board, and Generation Investment Management have all stepped up to power Octopus Energy's meteoric rise.
Greg Jackson, founder of Octopus Energy Group, said the investment would allow the company to build on the momentum that had seen it establish "market leadership in UK power".
"We've built the UK's leading specialist electric vehicle leasing business; in just two years, we've almost doubled our renewable generation portfolio to $7.6bn and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million," he said. "2023 saw us launch into heat pump installation and manufacture our own models - we now need to drive real scale. This year, our non-UK business has more than doubled with Trustpilot scores of 4.8/5 in almost every country."
He added that the company's expansion plans had received a further boost from the UAE Consensus delivered at last week's COP28 Climate Summit, which called on governments to transition away from fossil fuels, treble renewables capacity, and double the rate of energy efficiency improvements.
"With the renewed commitment seen at COP and our model proven, we will invest to accelerate our growth and create a truly global clean energy giant," he said.
Frank Calabria, CEO at Origin Energy, said: "The success of Octopus since our initial investment in May 2020 has exceeded all expectations and cemented our belief in its unique capabilities and strong platform for future growth."
Nobuhiro Sugesawa, chief digital officer at Tokyo Gas, said the latest deal would build on the existing partnership between the two companies.
"Tokyo Gas has been advancing the retail electricity business in Japan through our joint venture, TG Octopus Energy, with Octopus Energy and most recently, we have started cooperating in renewable energy investments in Europe," he said. "Tokyo Gas believes that technology innovation is essential for future corporate growth. Through our partnership with Octopus Energy, we aim to provide our customers with services using the latest technology and clean energy. We look forward to growing with Octopus Energy."
This monumental funding round is just the latest in a string of announcements from Octopus Energy, which has been making waves in the industry. These include the successful acquisition of Shell's Energy and Broadband business in the UK and Germany, a substantial £550 million funding facility from Lloyds Bank to boost its electric vehicle business, and the exciting unveiling of its inaugural project in Africa—a groundbreaking wind and solar farm in Sierra Leone. This marks the visionary group's fifth continent and the 18th operating country.