---
title: The £10bn Energy Platform That Powers Its Own Competitors
description: Kraken Technologies spins off from Octopus Energy to license its AI-powered cloud platform to rival utilities, hitting $500m revenue and eyeing a 2025 IPO.
author: Darie Nani (Editor-in-Chief)
date: 2025-09-18T08:40:08.000Z
updated: 2026-02-26T18:02:00.904Z
canonical: https://www.sovereignmagazine.com/article/the-10bn-energy-platform-that-powers-its-own-competitors
image: https://cdn.nanimediahouse.com/Kraken-scaled.jpg
categories: Business, Supply Chains
content_type: Spotlight
region: United Kingdom
publication: Sovereign Magazine
about:
  - type: Organization
    name: Kraken
    url: https://kraken.tech/
    sameAs:
      - https://www.linkedin.com/company/krakentech/
---

[Kraken](https://kraken.tech/) has achieved something remarkable in business: becoming indispensable to the very companies its parent Octopus Energy competes against daily. The energy software platform has reached $500 million in contracted revenue by licensing technology to direct competitors including energy giants EDF, E.ON Next and National Grid US. This creates an unusual competitive dance where Kraken profits from serving the 70 million accounts that include both Octopus customers and those of its rivals.

The spinoff announcement positions Kraken as the ultimate platform play in energy – building infrastructure so essential that even competitors need it to survive. This is the ‘AWS of energy’ approach, where [platform dominance transcends traditional competitive boundaries](https://www.sovereignmagazine.com/article/where-big-tech-doesn-t-bother-the-rise-of-profitable-niche-data-platforms).

## The Numbers Behind the Platform

[energy giants are willing to pay](https://www.sovereignmagazine.com/article/canada-s-1-4-billion-energy-deal-creates-unexpected-winners-in-commercial-services) a competitor for software. The platform processes 15 billion data points daily across 70 million household and business accounts worldwide. Its contracted revenue has quadrupled in just three years, reaching that $500 million milestone through deals with major utilities across multiple continents.

The timing of Tim Wan’s appointment as CFO signals public market ambitions. Wan joins from US software company Asana, where he guided the collaboration platform through its successful IPO and subsequent financial growth. His experience becomes crucial as Kraken enters a [selective but favourable IPO market](https://www.ey.com/en_us/insights/ipo/ipo-market-trends) where technology companies with proven financials are commanding premium valuations.

The broader energy management software market provides context for Kraken’s positioning. [Industry analysts project](https://www.researchnester.com/reports/energy-management-software-market/3061) the global market will reach $241.56 billion by 2037, growing at 13.7% annually from its current $54.05 billion valuation.

## Why Competitors Choose Kraken

Kraken’s business model mirrors successful platform strategies across other industries. Just as Amazon Web Services powers Netflix despite Amazon competing in streaming, or Visa processes transactions for competing banks, energy platforms can transcend traditional competitive boundaries by becoming essential infrastructure.

Greg Jackson, [Octopus Energy Group](https://www.sovereignmagazine.com/article/octopus-energy-raises-300-million-in-new-deal-to-drive-the-global-green-energy-revolution) founder, captures this ambition: ‘I set the embarrassingly low goal of 100,000,000 accounts by 2027. It looks like it’ll beat that and can now aim to serve a billion people over the next decade.’ This billion-person target positions Kraken not as an energy company but as global utilities infrastructure.

The platform approach works because utilities face common technological challenges regardless of their competitive positioning. All need to process vast amounts of smart meter data, manage distributed energy resources like solar panels and batteries, and provide real-time customer service. [Kraken’s AI-powered platform](https://www.sovereignmagazine.com/article/cloover-s-ai-platform-aims-to-redefine-energy-independence-for-european-households) handles these universal requirements while allowing each utility to maintain their distinct customer relationships and pricing models.

The decision by established players like EDF and E.ON to license technology from a competitor reflects the enormous cost and complexity of building modern utility software in-house. Traditional energy companies built their systems decades ago for simpler markets with fewer data points and customer interactions.

[Digitalisation spending](https://www.smart-energy.com/industry-sectors/digitalisation/digitalisation-of-energy-distribution-and-retail-a-33-4bn-market-by-2030/) in energy distribution and retail will more than double from $12.33 billion in 2020 to $33.42 billion by 2030, driven by investments in cloud computing, analytics and IoT integration. For many utilities, licensing proven technology beats attempting to recreate these capabilities internally.

## The Energy Transition Imperative

Kraken manages over 2GW of flexible power from EVs, home batteries and heat pumps – automatically charging cars and heating homes when energy is abundant and cheap. This flexibility becomes increasingly valuable as more renewable energy enters the grid, creating both surpluses and shortages that traditional utility software struggles to handle.

Since deregulation allowed competition, the energy retail market has seen dozens of new entrants, many requiring sophisticated technology platforms to compete effectively. [Established UK energy technology companies](https://www.miltonkeynes.co.uk/business/milton-keynes-firm-team-energy-celebrates-40-years-of-energy-innovation-5320693) have spent decades building solutions for this competitive environment, but Kraken’s cloud-native approach offers capabilities that older systems cannot match.

The integration of [renewable energy sources, electric vehicle charging](https://www.sovereignmagazine.com/article/can-ai-and-renewables-make-crypto-mining-pay-business-prospects-and-pitfalls-of-a-new-platfor) and home batteries requires software that can balance supply and demand in real-time across millions of connection points.

## The Independence Play

Spinning off Kraken as an independent company addresses a fundamental tension in serving competitors. Energy giants might hesitate to share sensitive operational data with a platform owned by a direct rival, even if that platform offers superior technology.

Independence creates what CEO Amir Orad calls ‘structural clarity’ for customers, investors and partners. Utilities can engage with Kraken as a neutral technology provider rather than inadvertently strengthening a competitor’s parent company.

The move also positions Kraken for the investment required to capture its billion-person ambition. The 2025 IPO market shows particular strength for technology companies with strong fundamentals. [Energy software valuations](https://softwareequity.com/market-maps/energy) have risen significantly as investors recognise the sector’s growth potential and the recurring revenue nature of platform businesses.

### Valuation and Market Positioning

While specific valuation figures remain undisclosed, Kraken’s $500 million in contracted revenue suggests it could command a premium multiple given its platform characteristics and growth trajectory. Software companies in the current market are achieving [median EV/EBITDA multiples around 17.6x](https://www.ey.com/en_us/insights/ipo/ipo-market-trends), though platform businesses with network effects often trade at higher multiples.

The recurring nature of utility contracts provides revenue predictability that investors value highly. Unlike many software companies that face constant churn, utilities typically commit to multi-year platform relationships due to the complexity of switching operational systems.

Tim Wan’s track record at Asana becomes relevant here. The collaboration platform went public in September 2020 and has maintained strong growth while achieving profitability – exactly the trajectory that current IPO investors seek from software companies.

Amir Orad frames the opportunity beyond traditional energy metrics: ‘We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken.’ The positioning as infrastructure for global utilities transformation, rather than just energy software, opens access to broader technology investor interest and potentially higher valuations.

The platform play that powers your own competitors represents the ultimate business approach – creating such essential technology that market dynamics become irrelevant. In Kraken’s case, success means every major utility becomes a customer, regardless of whether they compete with [Octopus Energy](https://www.sovereignmagazine.com/article/octopus-energy-to-invest-20-billion-in-offshore-wind-by-2030) in retail markets.

[software companies that face constant churn](https://www.sovereignmagazine.com/article/how-kpit-acquired-n-dream-three-times-and-why-that-actually-makes-sense), utilities typically commit to multi-year platform relationships due to the complexity of switching operational systems.