Octopus Energy Group has gained investment from Generation Investment Management in a deal that values the UK entech at $4.6bn post-deal.

The deal sees Generation take up to an approximately 13 percent equity stake for consideration of up to $600m alongside an approximate $55m equity investment from Origin Energy, to continue its global expansion and technology development. This will see Octopus enhancing its smart grid capability and commitment to driving the green energy revolution around the world, with an ambition to support 100 million energy accounts on its Kraken platform by 2027.

The valuation means that Octopus is now valued higher than Centrica, owner of British Gas, and the move comes as several UK suppliers have suffered financial stress, including Arvo Energy, whose 580,000 customers have now been transferred to Octopus.

Generation founded in 2004 and is chaired by former US Vice President Al Gore, who co-launched the company for sustainable investment. Gore has long been a clean energy campaigner and made the films An Inconvenient Truth and An Inconvenient Sequel: Truth to Power.

Speaking for Octopus Energy, founder and CEO, Greg Jackson said: “Whilst the UK energy market is currently in a tough state, it’s highlighted the need for investment in renewables and technologies to end our reliance on fossil fuels. So we are delighted to announce our agreement with Generation Investment Management, created to back sustainable companies changing the world for the better. three years ago, the management team of Octopus Energy met to discuss growth plans for our fledgling company. We watched An Inconvenient Sequel and were inspired to accelerate and expand our mission to make energy greener faster, cheaper, across the globe. Being backed by Generation, co-founded and chaired by Al Gore, enables us to make that dream come true.”

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