London-based Octopus Energy, which has grown to become the UK’s largest energy supplier and a significant M&A actor, has made its first tech investment focused on Africa, as the company continues to spread its tentacles to new geographies.
Octopus has invested in Mopo, a UK-headquartered company which rents solar-powered, portable batteries to customers across Nigeria, the Democratic Republic of Congo, Sierra Leone and Liberia.
Octopus declined to disclose the amount it has invested, but said it now owns a 10% stake in Mopo, which was founded in 2017.
Octopus founder and CEO Greg Jackson said the investment would help “make a big leap forward in accelerating electrification in the region – leapfrogging dirty fossil fuels.”
Octopus’ tentacles
Although this is Octopus’ first tech investment focused on Africa, it has made infrastructure deals previously.
In 2023, Octopus entered into a partnership to build a wind farm in Sierra Leone and it has also invested in Xlinks, a British startup bringing solar power from Morocco to the UK.
Octopus has retail operations in eight countries: Germany, the USA, Australia, Japan, Spain, Italy, France and New Zealand. The company’s software arm, Kraken, which provides tech to other utility companies, sells to customers globally.
The investment strategy
Octopus has four people in its strategy team working on acquisitions and investments.
It makes investments both from its balance sheet and from Octopus Energy Generation, which invests funds from pension funds, insurance companies, sovereign wealth funds and endowments.
Among others, Octopus Energy Generation has made a £200m investment in UK company Deep Green, which harnesses waste heat from data centres, and invested an undisclosed amount in US company Ocergy, which is making floating offshore wind turbine technology.
The investment in Mopo comes from Octopus Energy’s balance sheet, as does its investment in Xlinks.
Hamish Lazell, strategy director at the company says Octopus uses investments to both expand into new areas and secure tech expertise.
As well as investments, the company has made a significant number of acquisitions to fuel its growth.
Its acquisitions include nine energy firms, often using them as a way to expand into new markets. Octopus has also acquired five software firms, which it’s used to improve the tech stack offered through Kraken, its software arm.
Read the orginal article: https://sifted.eu/articles/octopus-energy-mopo-energy-africa/
