UK-based renewable energy supplier Octopus Energy has secured A$507m ($327m) from utilities company Origin Energy, Reuters reported on Friday.
The transaction will give Origin Energy a 20% stake in Octopus Energy. The corporate will provide the investment in tranches over four financial years, with $98.7m released immediately.
Founded in 2015, Octopus Energy is an electricity and gas retailer focused on the UK market that relies exclusively on renewable energy and enables customers to carbon offset their gas.
The company has also developed a cloud-based software platform, Kraken, to interact with consumers through the web, mobile devices and smart meters, and with industry, enabling features such as wholesale market trading and consumption forecasting.
Origin’s strategic investment is specifically related to Kraken and the corporate will adopt the platform for its own offering. Octopus will use the capital to further develop its technology and expand internationally.
Origin noted it had no intention of acquiring a majority stake in Octopus in future. The latter is currently a subsidiary of asset manager Octopus Group.
Greg Jackson, founder and chief executive of Octopus Energy, said: “We are thrilled to be able to accelerate our global expansion to make the green energy transition cheaper and faster.”
