- Fast-growth disruptor targeting 25 million energy accounts in the US by 2027
- UK energy tech pioneer committed to investing up to $100m to fuel US expansion
Tech unicorn and UK energy pioneer Octopus Energy today announced the acquisition of Silicon Valley-based startup Evolve Energy in a move that will shake up the US energy market. The $5 million deal is the pivotal element in Octopus’s $100 million investment in the US market and its latest international step, following moves into Australia and Germany last year.
Starting in Texas, Octopus Energy US, as the new business will be known, is targeting 25 million US energy accounts on its technology platform by 2027. They will make up a quarter of the business’s global target of 100 million energy accounts in the same time frame.
The renewable energy supplier is the UK’s fastest-growing private company, having gained 1.7 million customers since launching four years ago. In April 2020, Octopus became the country’s latest tech ‘unicorn’, valued at close to $2 billion after Australia’s leading energy company Origin Energy acquired a 20 percent stake for nearly $400 million.
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At the heart of Octopus’s success is Kraken, its proprietary cloud-based energy technology (EnTech) platform. The scalable platform provides industry-leading operational efficiency and outstanding service quality. But most importantly, Kraken is designed to drive the smart grid, giving customers access to cheaper electricity when renewable energy is abundant. The new partnership with Evolve Energy will enable the company to bring this innovation to the US, speeding up the country’s transition to a cheaper, greener energy system.
Kraken is already licensed as a SAAS+ (software and operating model) provider to other energy companies, allowing them to offer greener, cheaper energy to customers and help the world transition to a clean energy future. Across all its operations and licenses, Kraken is now contracted to serve 17 million energy accounts worldwide, including customers of E.ON UK, Origin Energy in Australia, and now Evolve Energy in the US.
Evolve Energy is a Houston and Silicon Valley-based energy startup that uses AI and machine learning to optimize energy usage, providing customers with the best energy prices for renewable power. Launched in 2018 by tech entrepreneur Michael Lee to challenge the country’s legacy suppliers, it has been backed by Matt Rogers, the co-founder of Nest, through his fund Incite. MINI-backed startup accelerator URBAN-X selected Evolve Energy for its 20-week program last year and Texas-based Capital Factory was an investor through Evolve’s first-place finish in 2019 EarthX startup competition.
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Octopus Energy CEO and founder Greg Jackson has been hugely impressed by Evolve’s brilliant team, its commitment to sustainability, and its forward-thinking approach.
“We knew that Evolve was a leading innovative energy firm that was doing great things with real-time energy, connected home devices, and renewables. We’re excited to be working with Michael and the Evolve team to bring futuristic technology, green energy and excellent customer service to Texas,” said Jackson. “In just four years, we have attracted 1.7 million customers to our business with a total of 17 million accounts contracted to our platform between ourselves and our license partners. Our ambitions for the US are high, but we haven’t missed a target yet.”
“Octopus Energy is inspirational in growing a customer base of over 1 million households in just four years. It has done so while also achieving customer satisfaction scores similar to Netflix and Amazon. It matches our aspiration for innovation and we’re thrilled to be part of the Octopus family,” said Lee. “The US energy market is rapidly moving towards ultra-low-cost renewable energy and is prime for a true digital transformation.”
