Octopus Energy has entered the US market with the acquisition of Evolve Energy, a Texas and Silicon Valley-based startup for $5 million.
Starting in Texas, the business will be known as Octopus Energy US and the company aims for its Kraken platform to eventually have a presence in all 50 states, targeting 25 million US accounts by 2027 – a significant portion of the 100 million it strives for globally.
Furthermore the company, which ultimately aims to invest $100 million in the US, has ambitions to supply customers under the Octopus brand in the states with deregulated energy markets which are similar to the UK.
The retailer has also confirmed it is in talks with larger American suppliers over the licensing of Kraken.
Founded by Michael Lee in 2018 to challenge the country’s legacy suppliers, renewable electricity retailer Evolve Energy uses AI and machine learning to optimise energy usage. The company’s tech platform will integrate with Kraken, allowing it to remotely control smart appliances.
Customers are only charged for the wholesale costs plus a $10 per month fee.
Octopus Energy chief executive and founder Greg Jackson said: “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. 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.”
Michael Lee said: “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. The US energy market is rapidly moving towards ultra-low cost renewable energy and is prime for a true digital transformation.”
Last year Jackson told Utility Week his company was in its “expansion phase” after acquiring German utility 4hundred.
A subsequent deal saw Australian firm Origin Energy purchase a 20 per cent stake in Octopus for £300 million, meaning the London-based supplier achieved unicorn status with a value of more than £1 billion.
Meanwhile the Kraken platform has been licensed to a number of UK firms, including Eon and Npower, as well as Good Energy.