Octopus Energy has welcomed Galvanize Climate Solutions and Lightrock as investors.
The deal follows Generation Investment Management and Canada Pension Plan Investment Board (CPP Investments) doubling down on their investment in Octopus, with the former securing new backing from pension funds in the USA and Australia, including Aware Super.
Both deals have valued the global energy and technology group at US$9bn (£7.2bn) – a 15% increase from Octopus’ last big funding round in December 2023.
Galvanize is a climate-focused investment firm headquartered in San Francisco, aiming to deliver capital and expertise to accelerate climate solutions around the world.
The firm is chaired by Katie Hall and Tom Steyer who both founded successful global investment firms with assets worth over US$36bn each.
Through its US$1bn ‘Innovation + Expansion Fund’ – Galvanize is injecting further fuel into Octopus Energy’s expansion in North America.
Lightrock is a global investment platform dedicated to building a sustainable future.
Headquartered in London, Lightrock manages capital across both public and private markets, a significant portion of which is dedicated to climate innovation.
With strong stakeholder relationships in Europe and a longstanding on-ground presence in Asia and Latin America, Lightrock aims to support Octopus in both its European and global growth.
Greg Jackson, founder of Octopus Energy Group, said: “I’m thrilled to welcome Galvanize and Lightrock – backed by some of the world’s most successful investors with incredible track records.
“Their climate-focused investment is a powerful catalyst for our global expansion and will allow us to keep up the momentum to further drive our growth across North America, Europe and into emerging markets.
“We share a mission to accelerate the clean energy transition through smarter, more sustainable systems worldwide.
“With their support, we’ll increase our global impact, ramp up innovation and scale our vision for reshaping the energy landscape globally.”
Veery Maxwell, co-head of innovation + expansion at Galvanize, said: “In order to decarbonise, increased system optimisation and flexibility services for the power sector are critical, particularly as the industry grapples with escalating load growth and distributed generation.
“We believe Octopus’ capabilities are distinctly suited to support power market participants across the energy value chain and are looking forward to working with its leadership to accelerate growth across North America and beyond.”
Nigel McCleave, partner at Lightrock, added: “It is remarkable that in less than a decade since founding, Octopus has become the UK’s largest provider of home electricity – a testament to its fair treatment of customers, pioneering technology, and transformation of the consumer energy experience.
“However, this feels like just the beginning; Octopus has the potential to transform so much more of the energy value chain for the better.
“The energy transition will require companies like Octopus to continue their trajectory of success, and we are excited to partner with a European leader that is not only succeeding, but which is already establishing itself as a truly meaningful company on the global stage.”