British Business Bank takes £25M stake in Kraken to keep IPO in London
- ByStartupStory | January 23, 2026
The UK government is taking a £25 million stake in Kraken, the technology arm being spun out of Octopus Energy. This move is part of its efforts to keep fast-growing tech companies anchored in London ahead of future stock market listings.
The British government is investing in Kraken through the British Business Bank to help the company grow. This support aims to encourage Kraken to go public in the UK within the next 18 months, rather than listing abroad.
Kraken was valued at $8.65 billion last month after selling a minority stake to a group of investors. It marked the first standalone funding round for the software business since it was built within Octopus Energy. The decision follows public comments from Greg Jackson, who recently said choosing between London and New York for a listing would be a “coin toss”.
Jackson has also been appointed a government adviser and sits as a non-executive member of the Cabinet Office board. While he has said he would personally prefer a London listing, he has stressed that the final decision rests with global shareholders.
Business secretary Peter Kyle stated that the investment aims to support high-growth companies, not just as a bribe. He emphasised the government’s goal to help businesses that can grow rapidly, create jobs, and build long-term wealth in the UK.
Kyle added that the investment does not come with conditions requiring Kraken to list in London and said there were no restrictions if the company chose to float elsewhere. However, he said he hoped Kraken would ultimately choose the London Stock Exchange on its own merits.
The stake in Kraken is part of a wider £125 million commitment by the British Business Bank into life sciences, deep tech, and AI. The bank’s total funding capacity was increased last year, with ministers encouraging it to take a bolder approach to backing growth companies.
Kraken said it had 73 million customer accounts as of April 2025, up from 51 million a year earlier. Its recurring revenue doubled to £422 million in the year to April 2025, underlining why the company is seen as one of the UK’s most valuable technology spin-outs.
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